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Assertion (A): Financial Statement Analysis involves breaking down financial records according to a specific plan.
Reason (R): Financial Statement Analysis is conducted to assess a company's operational efficiency and growth prospects.- a)If both Assertion and Reason are true and Reason is the correct explanation of Assertion
- b)If both Assertion and Reason are true but Reason is not the correct explanation of Assertion
- c)If Assertion is true but Reason is false
- d)If both Assertion and Reason are false
Correct answer is option 'C'. Can you explain this answer?
Assertion (A): Financial Statement Analysis involves breaking down financial records according to a specific plan.
Reason (R): Financial Statement Analysis is conducted to assess a company's operational efficiency and growth prospects.
Reason (R): Financial Statement Analysis is conducted to assess a company's operational efficiency and growth prospects.
a)
If both Assertion and Reason are true and Reason is the correct explanation of Assertion
b)
If both Assertion and Reason are true but Reason is not the correct explanation of Assertion
c)
If Assertion is true but Reason is false
d)
If both Assertion and Reason are false
|
Scholars Academy answered |
- Assertion is true because Financial Statement Analysis indeed involves breaking down financial records according to a specific plan.
- Reason is false because Financial Statement Analysis is not solely about assessing operational efficiency and growth prospects; it also evaluates profitability and solvency.
- The Reason is not a correct explanation of the Assertion as it does not directly correlate with the process of breaking down financial records.
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Crash Course for UGC NET Commerce
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