Assertion (A) Accountants do not take into consideration the price level changes while valuing various assets in different period. Reason (R) It is difficult to determine the value of assets, as value of assets changes w

CS Executive · Cost and Management Accounting · PYQS · December 2016
Assertion (A) Accountants do not take into consideration the price level changes while valuing various assets in different period. Reason (R) It is difficult to determine the value of assets, as value of assets changes with change in time. Select the correct answer from the options given below —
(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
(C) A is true, but R is false
(D) A is false, but R is true.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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