Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): The focus of calculation of working capital revolves around managing the operating cycle of the business.
Reason (R): It is because the concept of operating cycle is required to ascertain the liquidity of assets and urgency of payments to liabilities.
In the context of the above two statements, which of the following is correct?
1
Both (A) and (R) are true, but (R) is not the explanation of working capital management.
2
Both(A) and (R) are true and (R) is a correct explanation of (A).
3
Both (A) and (R) are false
4
(A) is false, but (R) is true.
5
Question Not Attempted