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How are Performing Assets (PAs) different from Non-Performing Assets (NPAs)?
  • a)
    PAs generate income, while NPAs do not generate income
  • b)
    PAs are held by individuals, while NPAs are held by businesses
  • c)
    PAs are always in the form of cash, while NPAs are in the form of physical assets
  • d)
    PAs are high-risk investments, while NPAs are low-risk investments
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
How are Performing Assets (PAs) different from Non-Performing Assets (...
Performing Assets (PAs) are assets that generate regular income, such as interest payments, whereas Non-Performing Assets (NPAs) do not generate periodical income due to the borrower's failure to repay the loan and interest on time.
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How are Performing Assets (PAs) different from Non-Performing Assets (NPAs)?a)PAs generate income, while NPAs do not generate incomeb)PAs are held by individuals, while NPAs are held by businessesc)PAs are always in the form of cash, while NPAs are in the form of physical assetsd)PAs are high-risk investments, while NPAs are low-risk investmentsCorrect answer is option 'A'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How are Performing Assets (PAs) different from Non-Performing Assets (NPAs)?a)PAs generate income, while NPAs do not generate incomeb)PAs are held by individuals, while NPAs are held by businessesc)PAs are always in the form of cash, while NPAs are in the form of physical assetsd)PAs are high-risk investments, while NPAs are low-risk investmentsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How are Performing Assets (PAs) different from Non-Performing Assets (NPAs)?a)PAs generate income, while NPAs do not generate incomeb)PAs are held by individuals, while NPAs are held by businessesc)PAs are always in the form of cash, while NPAs are in the form of physical assetsd)PAs are high-risk investments, while NPAs are low-risk investmentsCorrect answer is option 'A'. Can you explain this answer?.
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