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.

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

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

Option 3: (A) is true, but (R) is false

Option 4: (A) is false, but (R) is true

Question : Assertion (A): Debentures and long-term loans from banks and other financial institutions are included in the total long-term debt.
Reason (R): Equity share capital, Preference share capital, Reserves, and Surplus are all included in the shareholders' money.

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

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

Option 3: (A) is true, but (R) is false

Option 4: (A) is false, but (R) is true

Question : Assertion (A): Both microeconomics and macroeconomics are supplementary to each other.
Reason (R): The superiority of one approach over the other can not be claimed.

Option 1: Both A and R are true and R is the correct explanation of A.

Option 2: Both A and R are true but R is not the correct explanation of A.

Option 3: A is true but R is false.

Option 4: A is false but R is correct.

Question : Assertion (A): The current ratio assesses the firm’s ability to meet its short-term liabilities on time.
Reason (R): The current ratios assess the ability of the firm to meet its current liabilities immediately

Option 1: Both A and R are true and R is the correct explanation of A.
 

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

Option 3: A is true, but R is false.
 

Option 4: A is false, but R is true.

Question : Assertion: Physical capital is tangible in nature 
Reason: Physical capital can be seen and touchable.

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.