Question : Assertion A:- The cash flow statement and income statement are the same. Reason R:- The cash flow statement does not show the profit and loss account.
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: Both assertion A and reason R are not correct
Solution : Answer = Both assertion A and reason R are not correct.
Assertion A states that "cash flow statement and income statement are the same," which is incorrect because they serve different purposes. Reason R states that the "cash flow statement does not show profit and loss account," which is also incorrect because the cash flow statement includes information about profit or loss. Hence, the correct option is 3.
Question : Assertion (A): Cash Flow statement is a substitute for income statement.
Reason (R): Cash Flow Statement does not show Profit and Loss.
In the context of above two statements, which of the following is correct?
Question : Assertion A :- Bonus shares are not shown in the Cash Flow Statement because cash is not transacted. Reason R :- Issue of bonus shares will not involve cash.
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.
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