Assertion (A): Retained earnings are a reliable internal source of financing for businesses.
Reason (R): Retained earnings are the accumulated profits that a business retains and reinvests in its operations.
1
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation for Assertion (A).
2
Both Assertion (A) and Reason (R) are true, but Reason (R) is NOT the correct explanation for Assertion (A).
3
Assertion (A) is true, but Reason (R) is false.
4
Assertion (A) is false, but Reason (R) is true.