There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.
Assertion (A): Property, Plant, and Equipment (Fixed Assets) are shown as Non-current Assets in the Balance Sheet of a company.
Reason (R): Property, Plant, and Equipment (Fixed Assets) are used for a long time. Hence, these are Assets. Schedule III (Part I) of the Companies Act, 2013 requires it to be shown as Non-current Asset.
Answer & explanation
Correct answer: option 1
Property, plant, and equipment are non-current physical assets of a business operating the business and keeping it running. Classification Of Fixed Assets As discussed above, the fixed assets last for more than one year, and therefore, these assets are classified as Non-current assets or long-term assets in a classified balance sheet.