Question

Assertion (A): Comparative statements consider the monetary as well as qualitative elements of the business.

Reason (R): Comparative statements ignore the qualitative elements of business.

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.

Explanation:

Comparative statements focus on monetary elements by showing financial figures side-by-side for different periods. They do not consider qualitative elements since those cannot be measured in monetary terms.