Question : Assertion: A Purchase of fixed assets is an operating activity for Real estate company. Reason: - sale and purchased of fixed assets is the principal revenue producing activities for a real estate company.
In the context of above two statements, which of the following is correct
Option 1: Assertion A and reason R are correct and reason R is the 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 and reason R is the correct explanation of assertion A.
Solution : Answer = Assertion A and reason R are correct, and reason R is the correct explanation of assertion A
The Assertion that "Purchase of fixed assets is an operating activity for a real estate company" is correct. The reason provided, stating that "sale and purchase of fixed assets are the principal revenue-producing activities for a real estate company," is also correct and logically explains why purchasing fixed assets is considered an operating activity. Hence, the correct option is 1.
In the context of above two statements, which of the
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 furniture on credit will not result in flow of cash or cash equivalents Reason R: - purchased of furniture on credit will not involve cash. In the context of above two statements, which of the following is correct
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