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Home Questions DYCMQ8FS8S
Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A): Purchase and sale of shares on behalf of customers is an operating activity in the cash flow statement.
Reason (R):  They are being purchased for their customers and amount got for this is operating activity.

Options:

Both Assertion (A) and Reason (R) are true & Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, but 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.

Correct Answer:

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

Explanation:

It's not an operating activity but the brokerage received is an operating activity.

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