Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:
Ratios provide a ............. measure of a company's performance and condition.
Options:
Definitive
Relative
Gross
Qualitative
Correct Answer:
Relative
Explanation:
Ratio provides a relative measure of company performance and condition. • We can use financial ratios to examine profitability, asset utilisation, inventories, and other assets, liabilities, and costs related to a company's finances.