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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): The securities premium amount received by the company will be shown in the balance sheet directly.
Reason (R): Securities premium account is a capital receipt.
- 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 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
The premium amount is credited to a separate account called 'Securities Premium Account' and Is shown on the liabilities side of the company's balance sheet under the heading 'Reserve and Surplus'.
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Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): The securities premium amount received by the company will be shown in the balance sheet directly.
Reason (R): Securities premium account is a capital receipt.
The correct answer is option 'A' - Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
- The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of assets, liabilities, and shareholders' equity.
- The securities premium is the amount received by a company in excess of the par value of its shares when issuing shares at a premium.
- The securities premium is a part of shareholders' equity and represents the excess amount paid by investors for the shares. It is considered as a capital receipt because it is not generated from the company's core operations.
- The securities premium account is a reserve account and is shown under the shareholders' equity section of the balance sheet.
- The balance sheet provides a comprehensive overview of the company's financial position, and it includes various items such as assets, liabilities, and shareholders' equity. The securities premium amount is a part of shareholders' equity and is directly shown in the balance sheet to reflect the company's financial position accurately.
- Therefore, the Assertion (A) is true as the securities premium amount received by the company is indeed shown in the balance sheet directly.
- The Reason (R) is also true as the securities premium account is a capital receipt, representing the excess amount paid by investors for the shares. It is a part of shareholders' equity and is shown in the balance sheet to reflect the company's financial position accurately.
- Furthermore, the Reason (R) provides the correct explanation for Assertion (A) as it clarifies that the securities premium account being a capital receipt is the reason why it is shown in the balance sheet directly.
- Hence, the correct answer is option 'A' - Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Reason (R): Securities premium account is a capital receipt.
The correct answer is option 'A' - Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
- The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It consists of assets, liabilities, and shareholders' equity.
- The securities premium is the amount received by a company in excess of the par value of its shares when issuing shares at a premium.
- The securities premium is a part of shareholders' equity and represents the excess amount paid by investors for the shares. It is considered as a capital receipt because it is not generated from the company's core operations.
- The securities premium account is a reserve account and is shown under the shareholders' equity section of the balance sheet.
- The balance sheet provides a comprehensive overview of the company's financial position, and it includes various items such as assets, liabilities, and shareholders' equity. The securities premium amount is a part of shareholders' equity and is directly shown in the balance sheet to reflect the company's financial position accurately.
- Therefore, the Assertion (A) is true as the securities premium amount received by the company is indeed shown in the balance sheet directly.
- The Reason (R) is also true as the securities premium account is a capital receipt, representing the excess amount paid by investors for the shares. It is a part of shareholders' equity and is shown in the balance sheet to reflect the company's financial position accurately.
- Furthermore, the Reason (R) provides the correct explanation for Assertion (A) as it clarifies that the securities premium account being a capital receipt is the reason why it is shown in the balance sheet directly.
- Hence, the correct answer is option 'A' - Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
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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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. 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): The securities premium amount received by the company will be shown in the balance sheet directly.Reason (R): Securities premium account is a capital receipt.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 'A'. Can you explain this answer? theory, EduRev gives you an
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