Question

Ratio analysis is indispensable part of interpretation of result revealed by the _______________.

• A. Government statement
• B. Accounting statement
• C. Financial statement
• D. None of the above.

Answer 1

The correct option is C Financial statement

Ratio analysis is the process of determining and interpreting numerical relationship based on financial statements. It is the technique of interpretation of financial statements with the help of accounting ratios derived from balance sheet and profit and loss account hence, it is indispensable part of interpretation of result reveled by financial statement.