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What is an accounting Ratio? |
It is a mathematical number calculated as a reference to relationship of two or more numbers It is the number which is calculated by referring to two accounting numbers derived from the financial statements. Both 1 and 2 None of the above |
It is the number which is calculated by referring to two accounting numbers derived from the financial statements. |
A ratio is a mathematical number calculated as a reference to relationship of two or more numbers and can be expressed as a fraction, proportion, percentage and a number of times. When the number is calculated by referring to two accounting numbers derived from the financial statements, it is termed as accounting ratio. |
