Assertion (A): Comparative statement of profit and loss is the Vertical analysis of revenue and expenses items. Reason (R): In comparative statement of profit & loss, each item of revenue and expenses is analysed vertically for two or more accounting periods. In the context of the above two statements, which of the following is correct?

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KollegeApply · Accepted Answer

Both (A) and (R) are false. Explanation: Comparative statement of profit & loss is a horizontal analysis, not vertical. However, it does analyse revenue and expense items over two or more periods, so (R) is true.

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