Given below are two statements: Assertion (A): Non-current assets are not shown at liquidation values in the balance sheet of a going concern. Reason (R): A going concern entity holds non-current assets for earning revenue and not for immediate resale. Choose the correct option:

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Economics · Financial Accounting Principles

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both (A) and (R) are true, and (R) is the correct explanation of (A).

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Answer 1

(A) is false, but (R) is true.

Answer 2

Both (A) and (R) are true, and (R) is the correct explanation of (A).

Answer 3

(A) is true, but (R) is not the correct explanation of (A).

Answer 4

Both (A) and (R) are false.

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