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Operating cost and operating expenses are reperate concept shouldn't inter change Accounting Ratio: It is an arithmetical relationship between two accounting




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Calculation of ratios helps in determining and evaluating such aspects Page 3 ACCOUNTANCY ACCOUNTING RATIOS www topperlearning com 3

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This chapter covers the technique of accounting ratios for analysing the information contained in financial statements for assessing the solvency, efficiency 

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The use of ratios in accounting and financial management analysis helps the management to know the profitability, financial position (liquidity and solvency) 

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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 




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31 mar 2022 · State the limitations of Ratio Analysis CHAPTER financial ratio or accounting ratio which is a mathematical Notes to Accounts

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e) Accounting standards and guidance notes ? TECHNIQUES USED FOR FINANCIAL STATEMENT ANALYSIS Following techniques are used for analyzing financial 

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CBSE Quick Revision Notes and Chapter Summary Class-12 Accountancy Part – B – Accounting Ratios Introduction The main purpose of Financial Statements is 

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3 RATIO ANALYSIS Objectives: After reading this chapter, the students will be able to Profitability ratios measure the degree of accounting profits




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Fraction: As per this form, ratio is expressed in fraction • Meaning of Ratio Analysis: i It is a study of relationship among various financial factors in a business ii

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chapter covers the technique of accounting ratios It needs to be observed that accounting ratios exhibit relationship, if any, between Notes to Accounts Rs

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Ratio Analysis A popular tool used to conduct a quantitative analysis of information pertaining to company's financial statements Generally, accounting

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