Question : Assertion A:- The term; Financial Analysis includes both; Analysis; and Interpretation, Analysis is concerned with the simplification of financial data given in the financial statements by proper classification. Interpretation is concerned with explaining the meaning and significance of the financial data.

Reason R: - These two terms are complementary to each other, i.e., analysis is not of much use without interpretation of analysis.

Option 1: Both Assertion A and reason R are correct but the reason R is not the correct explanation of Assertion A

Option 2: Both Assertion A and reason R are correct but the reason R is the correct explanation of Assertion A

Option 3: Both Assertion A is correct but the reason R is not correct

Option 4: Both Assertion A and reason R are not correct

Question : Assertion A: - Financial analysis identifies symptoms of the problems but does not offer its diagnosis. The management has to look for remedies to rectify the problems.

Reason R: - Analysis of financial statements is based on the information given in the financial

Question : Assertion:- For analysis, it is necessary to reclassify the complex data contained in the financial statements into purposive classes so that the maximum desired information from every data for Analysis can be extracted or obtained.

Reason: - Reclassification and

Question : Assertion A:- Window dressing refers to the presentation of a better financial position than what it actually is by manipulating the books of account. On account of such a situation, financial analysis may give false information to the users.

Reason R:- Analysis of

Question : Assertion A:- Long-term and short-term solvency of an enterprise can be assessed on the basis of financial statement analysis. 

Reason R:- Such analysis is done by a securities analyst who is interested in cash-generating ability, dividend payout policy and the

Question : Assertion A :-  Analysis of financial statements is based on the information given in the financial statements. Hence, this analysis suffers from all such limitations from which the financial statements suffer.

Reason R:- The subjectivity is inherent in personal