Assertion (A): Cash flow statement as per the financial statements as well is incapable in revealing the overall financial position of a firm.

Reasoning (R): Cash is an important constituent of the working capital based on the recorded facts only.


  • A

    (A)and (R)both are correct and (R) is an explanation of (A)


  • B

    (A) is correct but (R) is not correct


  • C

    (A) is not correct but (R) is correct


  • D

    (A) and (R) both are incorrect