Assertion (A): The 'Going Concern' assumption implies that the enterprise will continue in operation for the foreseeable future. Reason (R): This assumption justifies the preparation of financial statements on a historical cost basis rather than a liquidation value basis. Choose the correct option.
A.A is true but R is false
B.Both A and R are true and R is the correct explanation of A
C.Both A and R are true but R is NOT the correct explanation of A
Explanation:
The Going Concern assumption means the business will not liquidate. This justifies using historical cost and depreciating assets over their useful lives, rather than valuing them at immediate break-up or liquidation values. R correctly explains A.
S1: Under GST, the 'E-invoice' system generates an Invoice Reference Number (IRN) and a QR code. S2: The IRN is generated by the taxpayer's own accounting software without connecting to the government portal. Which statement(s) is/are correct?
Explanation:
S1 is correct; e-invoicing generates an IRN and QR code. S2 is incorrect because the IRN is generated by the Invoice Registration Portal (IRP) of the government, not locally by the taxpayer's software without validation.
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