{"id":55025,"date":"2024-04-16T00:20:21","date_gmt":"2024-04-16T00:20:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=55025"},"modified":"2024-04-16T00:20:21","modified_gmt":"2024-04-16T00:20:21","slug":"assertion-a-ratio-analysis-is-one-of-the-tools-employed-to-know-the-financial-health-of-a-concern-reason-r-ratio-analysis-is-not-the-only-technique-available-to-take-an-investment-decision","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/assertion-a-ratio-analysis-is-one-of-the-tools-employed-to-know-the-financial-health-of-a-concern-reason-r-ratio-analysis-is-not-the-only-technique-available-to-take-an-investment-decision\/","title":{"rendered":"Assertion (A): Ratio analysis is one of the tools employed to know the financial health of a concern. Reason (R): Ratio analysis is not the only technique available to take an investment decision."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a970733d32b6\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Both (A) and (R) are true, and (R) is the correct explanation of (A)                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    Both (A) and (R) are true, but (R) is not the correct explanation of (A)                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    (A) is true, but (R) is false                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    (A) is false,but (R) is true                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: B. Both (A) and (R) are true, but (R) is not the correct explanation of (A).<\/p>\n<p>Ratio analysis is a tool used to evaluate a company&#8217;s financial health by comparing its performance to its own historical performance and to the performance of other companies in the same industry. Ratio analysis can be used to identify areas where a company is doing well and areas where it needs to improve.<\/p>\n<p>However, ratio analysis is not the only tool available to take an investment decision. Other factors that should be considered include the company&#8217;s management team, its products or services, its industry, and the overall economic environment.<\/p>\n<p>In conclusion, both (A) and (R) are true, but (R) is not the correct explanation of (A). Ratio analysis is a useful tool for evaluating a company&#8217;s financial health, but it is not the only factor that should be considered when making an investment decision.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: <div class=\"youtube-subscribe-container\">\r\n    <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>     <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> Both (A) and (R) are true, and (R) is the correct explanation of (A). This option is incorrect because (R) is not the correct explanation of (A). Ratio analysis is a tool used to evaluate a company&#8217;s financial health, but it is not the only factor that should be considered when making an investment decision.<\/li>\n<li>Option B: Both (A) and (R) are true, but (R) is not the correct explanation of (A). This option is correct. Ratio analysis is a useful tool for evaluating a company&#8217;s financial health, but it is not the only factor that should be considered when making an investment decision.<\/li>\n<li>Option C: (A) is true, but (R) is false. This option is incorrect because (R) is true. Ratio analysis is a tool used to evaluate a company&#8217;s financial health.<\/li>\n<li>Option D: (A) is false, but (R) is true. This option is incorrect because (A) is true. Ratio analysis is a tool used to evaluate a company&#8217;s financial health.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Assertion (A): Ratio analysis is one of the tools employed to know the financial health of a concern. 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