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.
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 and reason R is correct explanation of assertion A
Solution : Answer = Assertion A and reason R are correct, and reason R is the correct explanation of assertion A
Assertion A is correct because an unclaimed dividend does not result in the outflow of cash from the company. Reason R is also correct, as an unclaimed dividend does not affect the company's financial position since no cash payment is made. Reason R provides a correct explanation for Assertion A.
Hence, the correct option is 1.
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