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False ratio analysis correct; liquidity profitability ratios calculation interpretation.
Ref: NCERT Accountancy Class XII Chapter 9 Ratio Analysis explains liquidity solvency profitability activity ratios calculation interpretation significance clearly.
Comparative statements compare different periods data; shows absolute percentage changes trends.
Ref: NCERT Accountancy Class XI Chapter 9 Financial Statements explains trading profit loss balance sheet preparation format Schedule III.
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