Practicing Success
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): Capital employed of a firm is the amount invested by partners in the business to run business of the firm and earn profit. |
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true, but Reason (R) is False Assertion (A) is False, but Reason (R) is True |
Assertion (A) is true, but Reason (R) is False |
The actual firm’s capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets). |