| Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer: |
| Assertion (A): Long-term provision are provisions against which liability will arise after 12 months of the date of balance sheet or after the period of operating cycle. |
| Reason (R): Provision for tax, provision for expenses is shown under long-term provisions. |
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: C
Solution :
[c]
You need to login to perform this action.
You will be redirected in
3 sec
