Explanation:
GST is a destination-based consumption tax. The revenue goes to the state where the goods or services are *consumed*, not where they are manufactured (which was the case under the origin-based CST). S1 is correct, S2 is incorrect.
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.Both A and R are true but R is NOT the correct explanation of A
B.A is false but R is true
C.A is true but R is false
D.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.
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