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Question
Statement I: Comparative Statements consider the qualitative aspects of the business.
Statement II: Comparative Statements are free from personal bias.
Options
Both statements are correct.
Both statements are incorrect.
Statement I is correct, and Statement II is incorrect.
Statement I is incorrect, and Statement II is correct.
MCQ
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Solution
Both statements are incorrect.
Explanation:
Both statements are incorrect because Comparative Statements only analyse quantitative monetary data while completely ignoring qualitative factors like management quality, and they are not free from personal bias since they rely on financial accounting that involves personal judgements like depreciation and inventory valuation methods.
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