The statistical yardstick that provides a measure of the relationship between two accounting figures is _____________.

The accounting ratio

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Capital output ratio

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A current ratio

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Pay out ratio

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Solution

The correct option is A The accounting ratio
A Ratio is a statistical Yardstick to measure relationship between two accounting figures.It is very useful for the investors, suppliers, creditors. It is used as a mirror to reflect financial status of a particular company or group of company, firms, business houses.

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