Question

Assertion (A): Analysis of Financial Statements helps to assess the current profitability and operational efficiency of the business as a whole as well as its different departments.

Reason (R): Financial Analysis considers the impact of price level changes on the business.

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

Options

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

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

• Both (A) and (R) are incorrect.

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

Answer 1

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