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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): Depreciation is added to the net profit before tax.
Reason (R): Depreciation is a non-cash item which is an expense.
- 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)...
There was cash outflow for depreciation. Companies use investing cash flow to make initial payments for fixed assets that are later depreciated. Depreciation is a type of expense that is used to reduce the carrying value of an asset. Depreciation is entered as a debit-to-expense and a credit to asset value so actual cash flows are not exchanged.
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Directions : In the following questions, a statement of Assertion (A)...
Explanation:
Assertion (A): Depreciation is added to the net profit before tax.
Reason (R): Depreciation is a non-cash item which is an expense.
Option (A): Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Option (B): Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Option (C): Assertion (A) is true, but Reason (R) is false.
Option (D): Assertion (A) is false, but Reason (R) is true.
Explanation:
Depreciation is a non-cash expense, which means it does not involve actual cash outflow. It is a systematic allocation of the cost of a long-term asset over its useful life. This allocation reduces the carrying value of the asset on the balance sheet. Net profit before tax is calculated by deducting all expenses, including depreciation, from total revenue. Therefore, depreciation is added to the net profit before tax as it is an expense that reduces the profit earned during the period. This is the correct explanation of Assertion (A).
Hence, option (A) is the correct answer.
Assertion (A): Depreciation is added to the net profit before tax.
Reason (R): Depreciation is a non-cash item which is an expense.
Option (A): Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Option (B): Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Option (C): Assertion (A) is true, but Reason (R) is false.
Option (D): Assertion (A) is false, but Reason (R) is true.
Explanation:
Depreciation is a non-cash expense, which means it does not involve actual cash outflow. It is a systematic allocation of the cost of a long-term asset over its useful life. This allocation reduces the carrying value of the asset on the balance sheet. Net profit before tax is calculated by deducting all expenses, including depreciation, from total revenue. Therefore, depreciation is added to the net profit before tax as it is an expense that reduces the profit earned during the period. This is the correct explanation of Assertion (A).
Hence, option (A) is the correct 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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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 2025 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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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 2025 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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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 2025 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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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 2025 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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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): Depreciation is added to the net profit before tax.Reason (R): Depreciation is a non-cash item which is an expense.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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