Question

Assertion (A): Comparative Statements consider the qualitative aspect in the analysis.

Reason (R): Comparative Statements consider only the monetary information in the analysis, while qualitative aspects are not considered.

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

Options

• Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation for Assertion (A).

• Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation for Assertion (А).

• Assertion (A) is false, and Reason (R) is true.

• Assertion (A) is true, and Reason (R) is false.

Answer 1

Assertion (A) is false, and Reason (R) is true.

Explanation:

Assertion (A) is false because financial accounting completely ignores qualitative factors like employee skills or public reputation. Reason (R) is true because comparative statements are built strictly on money-based numerical facts from historical books, which means qualitative aspects are completely omitted from the final trend analysis.