Question

Assertion (A): A high operating ratio indicates a favourable position.

Reasoning (R): A high operating ratio leaves a high margin to meet non-operating expenses.

Options

• (A) and (R) both are correct and (R) correctly explains (A)

• Both (A) and (R) are correct but (R) does not explain (A)

• Both (A) and (R) are incorrect

• (A) is correct but (R) is incorrect

Answer 1

Both (A) and (R) are incorrect