Analysing Comparative Statement of Profit and Loss
A ratio of tw...
Question
A ratio of two variables from the income statement is known as __________ ratio.
A
Composite
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B
Balance sheet
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C
Income statement
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D
Liquidity
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Solution
The correct option is C Income statement A ratio of two variable from the income statement is known as income statement ratio. For example Gross profit ratio which is the ratio of Gross profit to Sales, here both the figures are from income statement.