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Commerce · Q1319

Accounting

Graduate and Post Graduate · Commerce · question 1319

Q1319

The question contains two sentences. One is statement (A) and the other is Reason (R). You have to examine both the sentence carefully and decide whether statement (A) and reason (R) correct and if so, reason is the correct explanation of statement. Mark these items in the answer sheet: Statement (A): Wages paid for installation of new machine is treated as capital expenditure. Reason (R): It is related to giving work to new asset.

A.
Both (A) and (R) are true but R is correct explanation of A
Answer
B.
Both (A) and (R) are true 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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