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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.
Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'D'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
All contingent liabilities are shown as a footnote to the balance sheet.
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Directions : In the following questions, a statement of Assertion (A)...
Assertion and Reasoning
Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.
Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in the future.
Explanation
Contingent liabilities are those liabilities that may or may not arise in the future, depending on the occurrence or non-occurrence of one or more uncertain events. These liabilities are shown in the financial statements since they have the potential to affect the financial position of a company.
Assertion (A) is false because not all contingent liabilities are shown in the non-current liabilities section of the balance sheet. Instead, they are classified into two categories - current and non-current liabilities - based on their nature and the likelihood of their occurrence.
Reason (R) is true because a contingent liability is dependent on a future event, and it is uncertain whether it will give rise to an actual liability. Examples of contingent liabilities include pending lawsuits, product warranties, and guarantees. Companies disclose these liabilities in their financial statements as footnotes, explaining the nature and amount of the liability.
Conclusion
In conclusion, while the Reason (R) is true, the Assertion (A) is false. Contingent liabilities are not always shown in the non-current liabilities section of the balance sheet, but rather they are disclosed in the financial statements as footnotes.
Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.
Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in the future.
Explanation
Contingent liabilities are those liabilities that may or may not arise in the future, depending on the occurrence or non-occurrence of one or more uncertain events. These liabilities are shown in the financial statements since they have the potential to affect the financial position of a company.
Assertion (A) is false because not all contingent liabilities are shown in the non-current liabilities section of the balance sheet. Instead, they are classified into two categories - current and non-current liabilities - based on their nature and the likelihood of their occurrence.
Reason (R) is true because a contingent liability is dependent on a future event, and it is uncertain whether it will give rise to an actual liability. Examples of contingent liabilities include pending lawsuits, product warranties, and guarantees. Companies disclose these liabilities in their financial statements as footnotes, explaining the nature and amount of the liability.
Conclusion
In conclusion, while the Reason (R) is true, the Assertion (A) is false. Contingent liabilities are not always shown in the non-current liabilities section of the balance sheet, but rather they are disclosed in the financial statements as footnotes.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): All contingent liabilities are shown in the non-current liabilities section of the balance sheet.Reason (R): A contingent liability refers to the claim which is uncertain to arise/which may or may not rise/which is dependent on a happening in future.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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