There are two statements given below named assertion and reason. Choose the correct answer.

Assertion (A): The balance sheet depicts the financial position of the company.
Reason (R): Receipts and payments record cash receipts and cash expenditures belonging to the current period only.

Assertion (A) is true but Reason (R) is false

The correct answer is option 3- Assertion (A) is true but Reason (R) is false.

Assertion (A): The balance sheet depicts the financial position of the company- This is correct. The balance sheet depicts the financial position of the company. It provides a snapshot of a company's financial condition at a specific point in time by detailing its assets, liabilities, and shareholders' equity.

Reason (R): Receipts and payments record cash receipts and cash expenditures belonging to the current period only. This is not correct. Receipts and payments does not record cash receipts and cash expenditures belonging to the current period only. The receipts and payments account is a part of the cash book, typically used in cash-basis accounting or for managing cash flows. It focuses on actual cash transactions that occur during an accounting period, not on accrual-based accounting. So any transaction whether it is related with current year, past year or future is recorded in it. It neither differentiate between capital items and revenue items.

Thus, assertion is true but reason is not true.