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Assertion (A): Comparative statements show the change in various items not only in absolute figures but in percentage form also. Reason (R): Comparative statements indicate trend of change - Accounts

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Question

Assertion (A): Comparative statements show the change in various items not only in absolute figures but in percentage form also.

Reason (R): Comparative statements indicate trend of change and the strong and weak points of the firm.

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

Options

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

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

  • Both (A) and (R) are false.

  • (A) is false, but (R) is true.

MCQ
Assertion and Reasoning
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Solution

Both (A) and (R) are true and (R) is the correct explanation of (A).

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Chapter 11: Tools for Financial Analysis : Comparative Statements - OBJECTIVE TYPE QUESTIONS [Page 11.47]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 11 Tools for Financial Analysis : Comparative Statements
OBJECTIVE TYPE QUESTIONS | Q B. 3. | Page 11.47
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