Question

Assertion (A): Payment of outstanding rent for the previous month will have no effect on cash flow statement.

Reason (R): It will be considered as outflow of cash.

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

Options

• Both (A) and (R) are correct, and (R) is the correct reason of (A).

• Both (A) and (R) are correct, but (R) is not the correct reason of (A).

• Only (R) is correct.

• Both (A) and (R) are wrong.

Answer 1

Only (R) is correct.