Question : Which ratio helps to know whether the profits of a firm are increasing or decreasing and if decreasing, the cause of their decrease?
Option 1: Turnover ratio
Option 2: Solvency Ratio
Option 3: Profitability Ratio
Option 4: Liquidity Ratio
Correct Answer: Profitability Ratio
Solution : One type of accounting ratio which helps in assessing the financial success of a company at the end of an accounting period is the profitability ratio. The ability of a business to turn a profit from its operations can be verified by profitability ratios. Hence, the correct option is 3.
Question : To know how efficiently the working capital and inventory are being used to obtain revenue from the operation which ratio helps to know this?
Question : The working capital ratio is part of __________ ratio?
Question : Which of the following ratio is the "Current Ratio"?
Question : The liquidity ratio is also called________?
Question : Which type of ratio states EBIT/Total assets?
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