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Question : Assertion A: - Financial analysis identifies symptoms of the problems but does not offer its diagnosis. The management has to look for remedies to rectify the problems.

Reason R: - Analysis of financial statements is based on the information given in the financial statements. Hence, this analysis suffers from various limitations from which the financial statements.

Option 1: Both Assertion A and reason R are correct but the reason R is not the correct explanation of Assertion A 

Option 2: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A 

Option 3: Both Assertion A is  correct but the reason R is not correct 

Option 4: Both Assertion A is and reason R are not correct 


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A 


Solution : Answer = Both Assertion A and reason R are correct but reason R is the correct explanation of Assertion A 

Financial analysis identifies symptoms of the problems but does not offer its diagnosis. The management has to look for remedies to rectify the problems. Analysis of financial statements is based on the information given in the financial statements. Hence, this analysis suffers from various limitations from which the financial statements.
Hence, the correct option is 2.

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