Question

Assertion (A): In Vertical Analysis figures of a single year are analysed and it can be done by preparing Common-size Statements.

Reason (R): In Horizontal Analysis figures of two or more years are analysed and it can be done by preparing Comparative Statements.

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.

Answer 1

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