Read the following statements - Assertion (A) and Reason (R):
Assertion: Refrigerator purchased by a confectionery shop can be a final good as well as a capital good.
Reasoning: Refrigerator purchased by a confectionery shop is a fixed asset which depreciates.
From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

The correct answer is Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion: Refrigerator purchased by a confectionery shop can be a final good as well as a capital good. This assertion is true. The refrigerator can be considered a final good because it is purchased by the confectionery shop for direct use in their operations, such as storing products for sale to customers. Additionally, it can also be considered a capital good because it is a long-term asset used in the production process to create and sell confectionery items over time.

Reasoning: Refrigerator purchased by a confectionery shop is a fixed asset which depreciates. This is correct.

While both the Assertion and the Reason are true, the Reason does not explain why the refrigerator can be considered both a final good and a capital good. The Reason provides information about the nature of the refrigerator as a fixed asset subject to depreciation but does not directly explain its dual classification as both a final good and a capital good. being a fixed asset that depreciates doesn't determine whether a good is final or capital. Both final and capital goods can be fixed assets and depreciate. The classification of the refrigerator depends on its specific use within the shop, not simply on being a fixed asset or depreciating.