Choose a pair of correct statements

(A) The only purpose of financial reporting is to keep the managers informed about the progress of operations.

(B) Analysis of data provided in the financial statements is termed as financial analysis.

(C) Long-term borrowings are concerned about the ability of a firm to discharge its obligations to pay interest and repay the principal amount.

(D) The ratio reflects quantitative and qualitative aspects of the results.

Choose the correct answer from the options given below:

Analyzing each statement:

(A) Incorrect - Financial reporting serves multiple stakeholders (investors, creditors, government, employees, public) not just managers. The word "only" makes this statement false as it limits the scope unrealistically.

(B) Correct - Financial analysis is defined as the systematic analysis of financial statement data to evaluate a firm's performance, position, and future prospects.

(C) Correct - Long-term creditors/lenders are primarily concerned with the firm's solvency - its ability to meet interest payments regularly and repay the principal amount at maturity. This assesses the firm's long-term financial stability.

(D) Incorrect - Ratios are purely quantitative tools that express numerical relationships between financial variables. They don't capture qualitative aspects like management quality, employee morale, or brand reputation. These ratios may require qualitative interpretation, but the ratios themselves only reflect quantitative data.

The pair of correct statements is (B) and (C).

Correct Option: 2