Q.Assertion (A) : When preparing a balance sheet, a bakery owner will categorize equipment as a fixed asset. Reason (R) : A fixed asset is anything that is owned over a long period of time and can be converted into cash. Code :
Correct answer: Both (A) and (R) are correct
Explanation
Fixed assets are tangible assets that is owned over a long period of time can be converted into cash. Equipments are fixed assets are showing in balance sheet.
Fixed assets are tangible assets that is owned over a long period of time can be converted into cash. Equipments are fixed assets are showing in balance sheet.