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प्रश्न
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.
उत्तर
The technique highlighted in the above statement is "Ratio Analysis".
The objectives of Ratio Analysis are:
- To simplify the accounting information.
- To analyse the profitability of a business.
- To assess the operating efficiency of a business.
- To determine short-term solvency (liquidity) and long-term solvency of a business.
Notes
Students can use any two points in their answer.
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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 a technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two limitations of the technique identified.
