Ratio analysis is an important means of expressing the relationship between two numbers.

Related MCQs

• The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .
• The ratio which measures the relationship between the cost of goods sold and the amount of average inventory is
• The relationship between two financial variables can be expressed in:
• ……………… ratio indicates the relationship of gross profit to net sales in terms of percentage.
• 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.
• Ratio analysis helps in investment decision.
• Ratio analysis ensures effective cost control.
• Earning per share is very important financial ratio is computed for assessing the state of --------------price of shares.
• Liquid Ratio is also known as 2:1 ratio.
• Financial Statement Analysis can be used for assessment of past performance only.