Question : Assertion (A): Purchase of Goodwill is classified as Investing activity in case of all the enterprises
Reason (R): It does not affect cash of the company since there is no payment or receipt in cash.
In the context of above two statements, which of the following is correct?
Option 1: Assertion (A) and Reson (R) are correct but the reason (R) is not the correct explanation of Assertion (A).
Option 2: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
Option 3: Assertion (A) is correct but the Reason (R) is not correct
Option 4: Assertion (A) is not correct but the Reason (R) is correct
Correct Answer: Assertion (A) is correct but the Reason (R) is not correct
Solution : Assertion (A) is correct but the Reason (R) is not correct Since Purchase of Goodwill is not classified as Investing activity in case of all the enterprises and also It does not affect cash of the company since there is no payment or receipt in cash.
Hence the correct answer is option 3.
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 Stock in Trade on credit will not result in Flow of Cash or Cash Equivalents.
Reason (R): Purchase of Stock in Trade on credit does not involve cash.
in the context of the above two statements, which of the following is correct?
Question : Assertion (A): Non-cash transactions are not considered in preparing Cash Flow Statement.
Reason (R): Non-Cash transactions do not affect Cash and Cash Equivalents.
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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