Question

Assertion (A): Comparative statements give due importance to price level changes.

Reason (R): Comparative statements are an analysis of historical records i.e., analysis of past financial statements. As such, they indicate trend in the past and do not reflect future.

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

Options

• (A) and (R) both are correct and (R) correctly explains (A).

• Both (A) and (R) are correct but (R) does not explain (A).

• Both (A) and (R) are incorrect.

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

Answer 1

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