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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
Explanation -The quick ratio or acid test ratio is a liquid- ity ratio that measures the ability of a com- pany to pay its current liabilities when they
Accounting ratios are calculated from the financial statements to arrive at meaningful conclusions pertaining to liquidity, profitability, and solvency
[Class XII : Accountancy] 337 Expression of ratios: Ratios are expressed in following four ways: Pure Ratio Like 2:1 All liquidity and solvency ratios
Financial Ratios Covers Information from Accounting 201 and 202 Financial ratios are useful indicators of a firm's performance and financial situation
financial statements, it is termed as accounting ratio Helpful in comparative analysis: The ratios are not being calculated for one year only
Class discussion; ? Homework on various question types; ? Quiz on formula of accounting ratios; ? Test on calculation and analysis of accounting
ACCOUNTANCY ACCOUNTING RATIOS www topperlearning com 2 ACCOUNTING RATIOS Introduction to Accounting Ratio and Ratio Analysis
interpret a full range of accounting ratios 14 1 Introduction Historically, of course, financial statements have been prepared for the benefit of