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

Assertion (A):  Comparative Statement is an analytical tool to compare individual items of the Balance Sheet and/or Statement of Profit and Loss of the company for two or more years.
Reason(R):  Comparative Statement is prepared to compare individual items of Balance Sheetment and/or statement of Profit and Loss and thus, the difference is ascertained both in amount and percent.

Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of the Assertion.

Comparative Statements refer to the statement of profit and loss and the balance sheet prepared by providing columns for the figures for both the current year as well as for the previous year and for the changes during the year, both in absolute and relative terms. As a result, it is possible to find out not only the balances of accounts as on different dates and summaries of different operational activities of different periods, but also the extent of their increase or decrease between these dates. The figures in the comparative statements can be used for identifying the direction of changes and also the trends in different indicators of performance of an organization.