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Significance of Ratios

When a ratio ...

Question

When a ratio is defined in respect to the items shown in the financial statements, it is termed as ___

A

Accounting ratio

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B

Financial ratio

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C

Costing ratio

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D

None of these

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Solution

The correct option is A
Accounting ratio

When the a ratio is defined in respect to the items shown in the financial statements, it is termed as accounting ratio.

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