Question : Assertion A :- interest received by the company on investment is a Investing activities Reason R :- interest received on call - in arrears by a company is a financing activities
Option 1: Assertion A and reason R are correct and reason R is correct explanation of assertion A
Option 2: Assertion A and reason R are correct but reason R is not the correct explanation of Assertion A
Option 3: Both assertion A and reason R are not correct
Option 4: Assertion A is correct but the reason R is not correct
Correct Answer: Assertion A and reason R are correct but reason R is not the correct explanation of Assertion A
Solution : Answer = Assertion A and reason R are correct, but reason R is not the correct explanation of Assertion A
Assertion A is correct because interest received on investments is indeed classified as investing activities in the cash flow statement. However, reason R is incorrect because interest received on call-in arrears is typically classified as operating activities, not financing activities. Therefore, assertion A and reason R are correct, but reason R is not the correct explanation of assertion A.
Question : Assertion: A Purchase of patent is classified as investing activities in case of all enterprises Reason R :- purchased of patent by finance company is classified under financing activities In the context of above two statements, which of the following is
Question : Assertion A:- unclaimed dividend does not result in flow of cash Reason: R It does not effect of the company since there is no payment of cash.
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