{"id":48319,"date":"2024-04-15T22:39:31","date_gmt":"2024-04-15T22:39:31","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48319"},"modified":"2024-04-15T22:39:31","modified_gmt":"2024-04-15T22:39:31","slug":"assertion-a-cash-flow-statement-as-per-the-financial-statements-as-well-is-incapable-of-revealing-the-overall-financial-position-of-a-firm-reason-r-cash-is-an-important-constituent-of-the-wor","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-cash-flow-statement-as-per-the-financial-statements-as-well-is-incapable-of-revealing-the-overall-financial-position-of-a-firm-reason-r-cash-is-an-important-constituent-of-the-wor\/","title":{"rendered":"Assertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm. Reason (R): Cash is an important constituent of the working capital based on recorded facts only."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97418d1032e\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Both (A) and (R) are correct, and (R) is the correct explanation of (A)                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    (A) is correct, but (R) is incorrect                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    (A) is incorrect, but (R) is correct                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Both (A) and (R) are incorrect                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: (A) Both (A) and (R) are correct, and (R) is the correct explanation of (A).<\/p>\n<p>Cash flow statement is a financial statement that shows how much cash a company has received and spent over a period of time. It is used to track a company&#8217;s liquidity and solvency. The cash flow statement is not a complete picture of a company&#8217;s financial position, but it is an important tool for understanding a company&#8217;s cash flow.<\/p>\n<p>Working capital is a measure of a company&#8217;s ability to meet its short-term obligations. It is calculated by subtracting current liabilities from current assets. Working capital is important because it indicates whether a company has enough cash on hand to meet its short-term obligations.<\/p>\n<p>The assertion (A) is correct because the cash flow statement does not provide a complete picture of a company&#8217;s financial position. The reason (R) is also correct because cash is an important constituent of the working capital. Therefore, both (A) and (R) are correct, and <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> (R) is the correct explanation of (A).<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Both (A) and (R) are correct, and (R) is the correct explanation of (A). This is the correct answer because the assertion (A) is correct because the cash flow statement does not provide a complete picture of a <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> company&#8217;s financial position, and the reason (R) is also correct because cash is an important constituent of the working capital.<\/li>\n<li>Option B: (A) is correct, but (R) is incorrect. This is not the correct answer because the reason (R) is also correct.<\/li>\n<li>Option C: (A) is incorrect, but (R) is correct. This is not the correct answer because the assertion (A) is correct.<\/li>\n<li>Option D: Both (A) and (R) are incorrect. This is not the correct answer because the assertion (A) is correct and the reason (R) is also correct.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Assertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm. 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