Practicing Success
Practicing Success
CUET Preparation Today
| Assertion: Financial statements are the basic sources of information to the shareholders and other external parties for understanding the profitability and financial position of any business concern. Reasoning: The primary objective of financial statements is to assist the users in their decision-making. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
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| Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. |
| Financial statements are the basic sources of information to the shareholders and other external parties for understanding the profitability and financial position of any business concern. They provide information about the results of the business concern during a specified period of time in terms of assets and liabilities, which provide the basis for taking decisions. Thus, the primary objective of financial statements is to assist the users in their decision-making. |
