CUET Preparation Today
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below- Assertion: The bank charges charged by the bank are included in the finance cost. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A. Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. Assertion (A) is true but Reasoning (R) is not correct. Assertion (A) is not true but Reasoning (R) is correct. |
Assertion (A) is not true but Reasoning (R) is correct. |
The correct answer is option 4- Assertion (A) is not true but Reasoning (R) is correct. Assertion: The bank charges charged by the bank are included in the finance cost. This is false. Bank charges are the charges to avail the services of the bank therefore bank charges are not part of Finance cost. These are included in other expenses. Reasoning: Bank charges are an expense not incurred in connection with raising finance but for availing the services of the bank. This is true. Finance charges are those charges which occur in raising the finance for the firm whereas Bank charges are the charges to avail the services of the bank. Therefore, bank charges are not part of Finance cost. |
