Question

Assertion (A): Horizontal analysis can be done by preparing Comparative Statements.

Reason (R): In Horizontal analysis figures of two or more years are placed side-by-side to facilitate comparison. As such, Comparative Statements are Horizontal Analysis.

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 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.

Answer 1

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