Read the given below two statements and mark the correct answer.

Assertion (A): The purpose of making various adjustments is to ensure that the final accounts reveal the true profit or loss and the true financial position of the business.
Reason (R) :  All adjustments are reflected in the final accounts at two places to complete the double entry.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

The correct answer is option 2- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A): The purpose of making various adjustments is to ensure that the final accounts reveal the true profit or loss and the true financial position of the business. THIS IS TRUE. It states that adjustments are made to ensure that the final accounts (such as the Income Statement and Balance Sheet) accurately depict the financial performance (profit or loss) and financial position (assets, liabilities, and equity) of the business. This is correct because adjustments ensure that all revenues and expenses are recognized in the correct period, and assets and liabilities are properly valued and disclosed.

Reason (R): All adjustments are reflected in the final accounts at two places to complete the double entry. THIS IS TRUE. It states that adjustments are reflected in the final accounts at two places to complete the double entry. In accounting, every transaction or adjustment is recorded with a double entry—there is a debit entry and a corresponding credit entry. Adjustments are no exception; they are recorded twice to maintain the balance of the accounting equation and ensure accuracy in financial reporting.

Thus, Both Assertion (A) and Reason (R) are correct statements but Reason (R) is not the reason of Assertion (A).