Practicing Success
Read the given below two statements and mark the correct answer. Assertion (A): Investments represent the funds invested in government securities, shares of a company, etc. |
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 correct answer is option 3- Assertion (A) is true but Reason (R) is False. Assertion (A): Investments represent the funds invested in government securities, shares of a company, etc. THIS IS TRUE. Investments represent the funds invested in government securities, shares of a company, etc. They are shown at cost price. If, on the date of preparation the balance sheet, the market price of investments is lower than the cost price, a footnote to that effect may be appended to the balance sheet. |