Ratio analysis helps in simplifying the _____ accounting figures and bring out their relationships.

Easy

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Complex

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Similar

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Solution

The correct option is B Complex
Ratio analysis is the process of determine and interpreting numerical relationship based on financial statements. Ratio analysis is useful in simplifying complex accounting figures, useful in assessing the operational efficiency, useful in forecasting purposes etc.

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Similar questions

Q. Which of the following statements are true about Ratio analysis?
a. Ratio analysis is useful in financial analysis.
b. Ratio analysis is helpful in communication and coordination.
c. Ratio analysis is not helpful in identifying weak spots of the business.
d. Ratio analysis is helpful in financial planning and forecasting.

Q. Financial analysis helps the users of the financial statements to understand the complicated matter in a simplified manner.

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgment and thinking, it is worse than useless.

Q. Bring out the importance of Financial Analysis.

Q. The statistical yard stick that provides a measure of the relationship between two accounting figures is a .

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Ratio analysis helps in simplifying the _____ accounting figures and bring out their relationships.

The correct option is B ComplexRatio analysis is the process of determine and interpreting numerical relationship based on financial statements. Ratio analysis is useful in simplifying complex accounting figures, useful in assessing the operational efficiency, useful in forecasting purposes etc.

The correct option is B Complex
Ratio analysis is the process of determine and interpreting numerical relationship based on financial statements. Ratio analysis is useful in simplifying complex accounting figures, useful in assessing the operational efficiency, useful in forecasting purposes etc.