Consider the following statements:
Statement (A): Balance sheet shows liquidity position of a business on a particular date.
Reason (R): Balance sheet is prepared on basis of actual transactions which are recorded in the books of accounts.
Give the correct answer:
A. A and R both are correct and R is correct explanation of A
B. A and R both are correct and R is not correct explanation of A
C. A is correct but R is wrong
D. A is wrong but R is correct
Answer: Option A
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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