Accounting · Accounting Standards and Concepts
Consider the following statements regarding specific accounting tools and standards: Statement 1: Under the provisions of AS 12, government grants are deferred and recognized in the financial statements over the periods necessary to match them with the related costs they are intended to compensate. Statement 2: A suspense account is a permanent ledger account used to accumulate and report hidden reserves to ensure that a business remains a going concern during periods of extreme financial crisis.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both statements are true.
- 2Both statements are false.
- 3Statement 1 is true, but Statement 2 is false.✓
- 4Statement 1 is false, but Statement 2 is true.
Correct answer
Statement 1 is true, but Statement 2 is false.
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