Ratios used in analysis of financial statement of a company may be classified as:

(A) Gaining Ratio
(B) Liquidity Ratios
(C) Solvency Ratios
(D) Activity Ratios
(E) Sacrificing Ratio

Choose the correct answer from the options given below :

(B), (C) and (D) only

The correct answer is Option (2) - (B), (C) and (D) only.

Ratio Analysis 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.

* GAINING RATIO AND SACRIFICING RATIO ARE CALCULATED IN CASE OF ADMISSION OR RETIREMENT OF A PARTNER.