Question

Assertion (A): Increasing the value of closing inventory increases profit.

Reason (R): Increasing the value of closing inventory reduces cost of goods sold.

Options

• Both (A) and (R) are correct and (R) is the correct reason of (A)

• Both (A) and (R) are correct but (R) is not the correct reason of (A)

• Only (R) is correct

• Both (A) and (R) are wrong

Answer 1

Both (A) and (R) are correct and (R) is the correct reason of (A)