Question : Which of the following is true:
A: The relationship between two financial variables can be expressed in percentages.
B: The asset whose life is more than a year is considered as long-term asset.
Option 1: Only A
Option 2: Only B
Option 3: Both of the above
Option 4: None of the above
Correct Answer: Both of the above
Solution :
The following examples illustrate how two financial variables might be related:
1: Pure ratio, 2: Percentage, 3: Rate or times.
Non-current assets are long-term assets that have a useful life of more than one year and usually last for several years.
Hence option 3 is the correct answer.