Question

Assertion (A): Cash withdrawn from bank will not result in flow of cash and cash equivalents.

Reason (R): Cash withdrawn from bank is movement between items of cash and cash equivalents. 

In the context of the above two statements, which of the following is correct?

Options

• (A) and (R) both are correct and (R) correctly explains (A).

• Both (A) and (R) are correct but (R) does not explain (A).

• Both (A) and (R) are incorrect.

• (A) is correct but (R) is incorrect.

Answer 1

(A) and (R) both are correct and (R) correctly explains (A).