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Accounting Ratio is
  • a)
    tool used by individuals to conduct a quantitative analysis of information
  • b)
    Based on credit transactions only
  • c)
    Based on cash transactions only
  • d)
    It is arithmetical relationship between two accounting variables
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Accounting Ratio isa)tool used by individuals to conduct a quantitativ...
Accounting Ratio is arithmetical relationship between two accounting variable. It is a mathematical expression of accounting figures in the form of percentage and time.
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Accounting Ratio isa)tool used by individuals to conduct a quantitative analysis of informationb)Based on credit transactions onlyc)Based on cash transactions onlyd)It is arithmetical relationship between two accounting variablesCorrect answer is option 'D'. Can you explain this answer?
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