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प्रश्न
It is a technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two limitations of the technique identified.
उत्तर
Ratio analysis is the technique which involves regrouping of data by application of arithmetical relationships.
Two Limitation:
- Absence of Standard Ratio: There are no standard ratios against which accounting ratios can be compared.
- Qualitative factors are not considered: Ratio analysis is a technique analysis. It ignores qualitative factors, which may be important in decision making.
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संबंधित प्रश्न
Ratio analysis is useful for inter-firm comparison.
It is the process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of balance sheet and the statement of profit and loss. Identify the process and state any two objectives of the identified process
It is technique which involves regrouping of data by application of arithmetical relationships. " Identify the technique highlighted in the above statement and state its any two objectives.
