12th Class Accountancy Accounting Ratios Question Bank Assertion and Reason - Accounting Ratios

  • question_answer
    Assertion [A] :
    If Current Ratio of a company is 1:1. Its Net working capital will be Zero.
    Reason [R]:
    When Net Working Capital is Zero, it will reduce the Current Ratio of the Company.
    Choose the Correct Option from the following:

    A) Assertion and Reason both are correct and Reason is the correct explanation of assertion

    B) Assertion and Reason both are correct but Reason is not correct explanation of assertion

    C) Only Assertion is correct

    D) Reason is correct but Assertion is not correct

    Correct Answer: C

    Solution :

    Only Assertion is correct


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