Q441
Assertion (A): The financial statements prepared on a historical cost basis, results in an erosion of capital in the long run. Reason (R): Maintaining the books of accounts as per the current purchasing power technique only may contain the inflationary pressure. Which is the correct statement?
A.
Both (A) and (R) are true, and (R) is the correct explanation of (A)
B.
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
AnswerC.
(A) is true, but (R) is false
D.
(A) is false, but (R) is true
Answer: Option B
Solution
Answer: Option B
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