Question : Assertion (A): A company's long-term financial position is determined by its liquidity ratios:
Reason (R): Liquidity ratios, such as the current ratio and quick ratio, are useful in determining the firm's long-term financial position.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is False

Option 4: Both Assertions (A) and Reason (R) are False

Question : Assertion (A): Liquidity Ratios are used to evaluate a firm's long-term financial position.
Reason (R): Liquidity ratios, such as the current ratio and quick ratio, are useful in determining the firm's long-term financial position.

Question : Assertion (A): Liquidity Ratios provide information on the firm's capacity to satisfy its immediate financial obligations.
Reason (R): The current ratio and quick ratio are two liquidity ratios that aid in determining a company's financial standing and ability to

Question : Assertion (A): The fixed asset turnover ratio aids in evaluating the stability of the company's long-term financial condition.
Reason (R): It displays the ratio of shareholders' funds to total long-term debt.

Question : Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Activity Ratios are the ratios that are calculated for measuring the efficiency of operations of business

Question : Assertion (R): Profitability Ratios are the indicators of the profitability of the firm.
Reason (R): Profitability Ratios, i.e., Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, and Return on Investment Ratio help in assessing the