The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.

Related MCQs

• Ratio analysis is an important means of expressing the relationship between two numbers.
• Ratio analysis helps in investment decision.
• Ratio analysis ensures effective cost control.
• Liquid Ratio is also known as 2:1 ratio.
• Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?
• The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .
• Financial Statement Analysis can be used for assessment of past performance only.
• If Gross profit is 54000 and sales is Rs. 180000 then gross profit ratio will be ….
• The ratio which measures the relationship between the cost of goods sold and the amount of average inventory is
• Accounting Standards are beneficial not only to the business enterprises but also to the………….. as well.