question_answer

Direction:  In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?

Assertion (A) The value of the concern is determined only by profitability.

Reason (R) Financial decisions which increase the profitability will decrease the value of the firm.

Codes

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