There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  The cash flow statement ignores two basic accounting principles- full disclosure and accrual concept.
Reason (R):  It facilitates the management of short-term plans by following the cash basis of accounting.

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

Assertion (A) states that the cash flow statement ignores full disclosure and the accrual concept. This is generally true because the cash flow statement primarily focuses on cash transactions and doesn't provide detailed information about other accounting principles.
Reason (R) claims that the cash flow statement facilitates short-term planning by following the cash basis of accounting. This is accurate but The cash flow statement does use the cash basis of accounting, but its main purpose is to report cash inflows and outflows, not specifically to facilitate short-term planning. While both Assertion (A) and Reason (R) can be considered true to some extent, Reason (R) does not correctly explain why Assertion (A) is true.