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 based on effective utilisation of resources.

Reason (R): Current ratio and Quick Ratio are liquidity ratios.

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: Assertion (A) is false but Reason (R) is true

Question : Assertion: Factors affecting physical distribution include transportation, warehousing, and inventory management.

Reason: Physical distribution has no role in improving supply chain efficiency and customer satisfaction.

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.

Option 3: Assertion is true, but the reason is false.

Option 4: Assertion is false, but the reason is true.

Question : Assertion: Factors affecting physical distribution include transportation, warehousing, and inventory management.

Reason: Physical distribution has no role in improving supply chain efficiency and customer satisfaction.

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.

Option 3: Assertion is true, but the reason is false.

Option 4: Assertion is false, but the reason is true.

Question : Assertion: Factors affecting physical distribution include transportation, warehousing, and inventory management.

Reason: Physical distribution has no role in improving supply chain efficiency and customer satisfaction.

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.

Option 3: Assertion is true, but the reason is false.

Option 4: Assertion is false, but the reason is true.

Question : Which of the following statements is false with respect to the Activity ratio?

Option 1: These ratios are known as turnover ratios.

Option 2: These ratios measure the efficiency and rapidity of the resources of the Company.

Option 3: These ratios are generally calculated on the basis of revenue from operations or cost of revenue from operations. 

Option 4: None of the above