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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): Sale of fixed assets is written under the Investing Activities.
Reason (R): Sale of fixed assets leads to inflow of cash.
- 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 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): Sale of fixed assets is written under the Investing Activities.
Reason (R): Sale of fixed assets leads to inflow of cash.
Explanation:
The assertion states that the sale of fixed assets is written under the Investing Activities section. This is true because the sale of fixed assets, such as land, buildings, machinery, etc., is considered an investing activity as it involves the disposal of long-term assets in exchange for cash or other financial assets.
When a company sells a fixed asset, it receives cash in return. This cash inflow is recorded as a positive figure in the cash flow statement. The reason states that the sale of fixed assets leads to an inflow of cash, which is also true.
Reason (R) Explanation:
The sale of fixed assets results in a cash inflow because the company receives cash in exchange for the assets sold. This cash inflow is recorded under the Investing Activities section of the cash flow statement because it represents a change in the company's investment in long-term assets.
Assets are classified into three categories in the cash flow statement - operating, investing, and financing activities. Operating activities relate to the company's core business operations, investing activities involve the purchase and sale of long-term assets, and financing activities include activities related to raising capital and repaying debts.
When a fixed asset is sold, the cash received from the sale is considered an investing activity because it represents a change in the company's investment in fixed assets. The cash inflow from the sale of fixed assets is reported as a positive figure under the Investing Activities section in the cash flow statement.
Conclusion:
Both the assertion and reason are true. The sale of fixed assets is indeed written under the Investing Activities section, and the reason for this is that the sale of fixed assets leads to a cash inflow. However, the reason does not provide an explanation for the assertion. It simply states a fact that supports the assertion. Therefore, option 'B' is the correct answer.
Reason (R): Sale of fixed assets leads to inflow of cash.
Explanation:
The assertion states that the sale of fixed assets is written under the Investing Activities section. This is true because the sale of fixed assets, such as land, buildings, machinery, etc., is considered an investing activity as it involves the disposal of long-term assets in exchange for cash or other financial assets.
When a company sells a fixed asset, it receives cash in return. This cash inflow is recorded as a positive figure in the cash flow statement. The reason states that the sale of fixed assets leads to an inflow of cash, which is also true.
Reason (R) Explanation:
The sale of fixed assets results in a cash inflow because the company receives cash in exchange for the assets sold. This cash inflow is recorded under the Investing Activities section of the cash flow statement because it represents a change in the company's investment in long-term assets.
Assets are classified into three categories in the cash flow statement - operating, investing, and financing activities. Operating activities relate to the company's core business operations, investing activities involve the purchase and sale of long-term assets, and financing activities include activities related to raising capital and repaying debts.
When a fixed asset is sold, the cash received from the sale is considered an investing activity because it represents a change in the company's investment in fixed assets. The cash inflow from the sale of fixed assets is reported as a positive figure under the Investing Activities section in the cash flow statement.
Conclusion:
Both the assertion and reason are true. The sale of fixed assets is indeed written under the Investing Activities section, and the reason for this is that the sale of fixed assets leads to a cash inflow. However, the reason does not provide an explanation for the assertion. It simply states a fact that supports the assertion. Therefore, option 'B' is the correct answer.
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Directions : In the following questions, a statement of Assertion (A)...
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
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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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. 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): Sale of fixed assets is written under the Investing Activities.Reason (R): Sale of fixed assets leads to inflow of cash.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 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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