Assertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm.
Reason (R): Cash is an important constituent of the working capital based on recorded facts only.
A. Both (A) and (R) are correct, and (R) is the correct explanation of (A)
B. (A) is correct, but (R) is incorrect
C. (A) is incorrect, but (R) is correct
D. Both (A) and (R) are incorrect
Answer: Option A
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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