Match functional ratio classifications with their primary purpose:
| Column A | Column B | ||
| A. | Liquidity Ratios | 1. | Measure earning capacity of the business |
| B. | Solvency Ratios | 2. | Measure efficiency of operations based on effective utilisation of resources |
| C. | Activity Ratios | 3. | Measure the ability of the business to meet its short-term obligations |
| D. | Profitability Ratios | 4. | Measure the ability of the business to service its debt in the long run |
Choose the correct option from below:
1
A-1, B-2, C-3, D-4
2
A-3, B-4, C-2, D-1
3
A-4, B-3, C-1, D-2
4
A-2, B-1, C-4, D-3