Question

Accounting provides information about quantitative aspects of business hence ________.

• A. the ratio also reflect monetary and qualitative aspect
• B. the ratio also reflect only monetary aspect
• C. the ratio also reflect non-monetary aspect
• D. None of the Above

Answer 1

The correct option is B the ratio also reflect only monetary aspect

One of the limitation of ration analysis is Ignoring qualitative e or non-monetary aspect is: Accounting provides information about quantitative (or monetary) aspects of business. Hence, the ratios also reflects only the monetary aspects, ignoring completely the non-monetary (qualitative) factors.