Economics · Financial Ratios
Assertion (A): Liquidity ratios help assess the ability of a firm to meet its short-term obligations. Reason (R): Liquidity ratios primarily evaluate the relationship between current assets and current liabilities.
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- 1Both (A) and (R) are true and (R) is the correct explanation of (A)✓
- 2Both (A) and (R) are true but (R) is not the correct explanation of (A)
- 3(A) is false but (R) is true
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Both (A) and (R) are true and (R) is the correct explanation of (A)
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