Practicing Success
Technique of ratio analysis helps in: |
Assess the profitability Assess the solvency Assess the efficiency of an enterprise All of the Above |
All of the Above |
Ratio Analysis: It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm. As a technique of financial analysis, accounting ratios measure the comparative significance of the individual items of the income and position statements. It is possible to assess the profitability, solvency and efficiency of an enterprise through the technique of ratio analysis. |