Commerce Exam > Commerce Questions > Directions : In the following questions, a s...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Directions : In the following questions, a statement of Assertion (A)...
All contingent liabilities are shown as a footnote to the balance sheet.
View all questions of this test
Most Upvoted Answer
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.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
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?
Question Description
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.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of
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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an
ample number of questions to practice 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? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup