CUET Preparation Today
In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options. Assertion (A)- Expenditure on purchasing computers is a capital expenditure. Reason (R)- Purchasing the computer is a capital expenditure as it increases the liability. |
Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation of (A). (A) Is true but (R) is false. (A) Is false but (R) is true. |
(A) Is true but (R) is false. |
The correct answer is Option 3: (A) Is true but (R) is false. Expenditure on purchasing computers is indeed a capital expenditure because it is an investment in physical assets that will provide benefits over a long period. However, the reason (R) is false because purchasing computers does not increase liability; instead, it is considered an investment in assets. |
