Comparison of financial statements highlights the trend of the _________ of the business.
Accounting Ratio is
Accounting Ratio is also called financial ratios provide a way of expressing the relationship between one accounting data point and another which is intended to provide a useful comparison.
Financial statement analysis is of two types i.e. _________
Financial statement analysis is of two types i.e. External and internal analysis. External analysis is concerned with comparing business with other firm.
External analysis is concerned with __________
External analysis is concerned with:
Creditors
Government
Financial Institutions
Which of the following is not a Quick Asset_______
Following are the quick assets except Loose Tools:
Trade Receivables
Cheques in hand
Bank Balance
Common Size financial statement is 
Common Size financial statement is Vertical Analysis of financial statements. It involves amount of each individual item of balance sheet and statement of profit and loss.
Accounting Ratio is
Accounting Ratio is arithmetical relationship between two accounting variable. It is a mathematical expression of accounting figures in the form of percentage and time.
_____A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements
Ratio Analysis is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements.
Accounting Ratios can be expressed in ….
Accounting Ratios can be expressed in:
•Percentage
•Fraction
•Times
If we deduct current liabilities from current assets, we get_________
Formula of Calculating Working Capital: Working Capital = Current Assets – Current Liabilities
Which Ratio shows the relationship between current assets with current liabilities
Current Ratio shows relationship between current assets and current liabilities.
Ideal Liquid ratio is
Ideal liquid ratio is 1:1 i.e. Liquid assets should be equal to the current liabilities. In other words, a firm is able to pay its current liabilities.
Which of the following is a liquidity ratio?
Quick Ratio is also known as liquid ratio. Formula: Liquid Assets/ Current Liabilities
The formula of Debt equity ratio is 
Formula of Debt Equity Ratio is:
Formula: Debt/Equity
Debt means long term borrowings and Equity means shareholders’ funds.
Followings are the solvency ratio except
Following ratios are solvency ratios except Quick ratio:
Proprietary Ratio
Total Assets to Debt Ratio
Debt equity ratio
Followings are the solvency ratio except
Following ratios are solvency ratios except Quick ratio:
Proprietary Ratio
Total Assets to Debt Ratio
Debt equity ratio
Which of the following is not included in quick assets
Quick assets do not include inventories. Stores and spares is the part of inventories.
The main purpose of activities ratios is 
Activity ratio is always known as performance or turnover ratio. The main purpose of this ratio is to know that how effectively the resources have been used.
INVENTORY TURNOVER RATIO is also called as
Inventory turnover ratio is also known as stock turnover ratio. Inventory is wider term whereas stock is a narrow term.
Which of the following is not part of shareholders’ funds?
Following items are part of shareholders’ funds except Proposed Dividend:
Share Capital
General Reserve
Balance i.e. Surplus in Statement of P/L
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