Question

Assertion (A): Financial analysis is a systematic process of analysing the financial statements for presenting them in a understandable form for the purpose of decision making.

Reason (R): Various tools for analysing the financial statements are Comparative Statements, Common-size Statements, Accounting Ratios, Cash Flow Statement etc.

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

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