6 Views

Question : Which of the following is not the Objective of Ratio Analysis?

Option 1: To identify the areas of the business that require more attention

Option 2:

Not provide data for cross-sectional analysis, for comparison with some chosen enterprises in the same industry

Option 3:

To give a more thorough study of the business's liquidity, solvency, activity, and profitability

Option 4: To provide data that will be beneficial for estimating and creating future strategies


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer:

Not provide data for cross-sectional analysis, for comparison with some chosen enterprises in the same industry


Solution : Objectives of Ratio Analysis:

(i) To identify the areas of the business that require more attention.

(ii) To give a more thorough study of the business's liquidity, solvency, activity, and profitability.

(iii) It provides the data for cross-sectional analysis,  for comparison with some chosen enterprises in the same industry.

(iv)To provide data that will be beneficial for estimating and creating future strategies.
Hence, the correct option is 2.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books