Question : ---------------may be expressed as an arithmetical relationship between two accounting variables.
Option 1: Ratio
Option 2: Accounting ratio
Option 3: Ratio Analysis
Option 4: None of the above
Correct Answer: Accounting ratio
Solution : Answer = Accounting ratio
The accounting ratio may be expressed as an arithmetical relationship between two accounting variables. The term accounting ratio is used to describe significant relationships which exist between figures shown in a Balance Sheet, in a Statement of Profit and Loss, in a budgetary control system. Hence, the correct option is 2.
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