Question

Assertion (A): With the help of financial analysis, short term lenders are interested in knowing the liquidity of the company.

Reason (R): With the help of financial analysis, investors assess the profitability of the Company.

In the context of the above two statements, which of the following is correct?

Options

• Both (A) and (R) are correct and (R) is the correct reason of (A).

• Both (A) and (R) are correct but (R) is not the correct reason of (A).

• Only (R) is correct.

• Both (A) and (R) are wrong.

Answer 1

Both (A) and (R) are correct but (R) is not the correct reason of (A).