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प्रश्न
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
उत्तर
The Process of identifying the financial strengths and weaknesses of the firm is Ratio Analysis.
Two Objectives
- To simplify the accounting information.
- To determine liquidity, solvency and profitability.
- To assess the operating efficiency of business.
- To help in comparative analysis.
संबंधित प्रश्न
Ratio analysis is useful for inter-firm comparison.
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.
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.
