#ratio analysis

Ratio Analysis 2

What will be the current ratio of a company whose net working capital is zero?

1:1 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.

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Ratio Analysis 1

A rise in operating ratio will indicate a rise in efficiency.

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.

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Ratio Analysis 1

Purchase returns amounting to ₹ 20,000 will deteriorate the inventory turnover ratio

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.

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Ratio Analysis 1

Ratio analysis can help know about the potential areas which can be improved with the effort in the desired direction.

True 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.

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Ratio Analysis 1

Higher the ratio, the more favorable it is, doesn’t stand true for:

Operating ratio 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.

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Ratio Analysis 1

Which of the following statements are true about Ratio Analysis? A) Ratio analysis is useful in financial analysis. B) R

A, B and D 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.

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