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

Question

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

Team Careers360 · Accepted Answer

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.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Related Questions

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

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 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.

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.

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

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

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 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.

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.