Practice question
Question
There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below.
Assertion (A): Inventories and prepaid expenses are not considered as quick assets.
Reason (R): Inventories take some time before it is converted into cash while prepaid expenses can be converted into cash.
Explanation
Assertion (A) is true, but Reason correct accounting fundamental; capital revenue classification per accounting principles.
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