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Commerce · Q1365

Accounting

Graduate and Post Graduate · Commerce · question 1365

Q1365

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
Answer
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

Solution

Answer: Option A
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