Question : Accounting ratios are an important tool of -
Option 1: Trial Balance
Option 2: Financial statement analysis and trial balance
Option 3: Financial statement analysis
Option 4: None of the above
Answer (1)
25th Jan, 2024
Correct Answer: Financial statement analysis
Solution : An important tool for analysing financial statements is accounting ratios. To analyse a company's financial accounts, two or more financial data are compared. These show a relationship between a pair or more accounting figures gleaned from financial statements.
Hence the correct answer is option 3.
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