A: Cash-based accounting records transactions only when cash is received or paid. R: Cash-based accounting provides a true and fair view of the financial position. Choose the correct option.
A.A is false but R is true
B.Both A and R are true but R is NOT the correct explanation of A
C.Both A and R are true and R is the correct explanation of A
Explanation:
Cash-based accounting only records cash inflows and outflows. It does not record credit transactions or outstanding/prepaid items, hence it fails to provide a true and fair view of the financial position. A is true, R is false.
Explanation:
Direct taxes (like Income Tax) are levied on income and wealth. They are progressive in nature, meaning the tax rate increases with higher income, not regressive. S1 is correct, S2 is incorrect.
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