Transcription of Accounting Ratios 5
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Accounting Ratios 5
Financial statements aim at providing financialinformation about a business enterprise to meetthe information needs of the statements prepared by a businessenterprise in the corporate sector are published andare available to the decision-makers. Thesestatements provide financial data which requireanalysis, comparison and interpretation for takingdecision by the external as well as internal users ofaccounting information. This act is termed asfinancial statement analysis. It is regarded as anintegral and important part of Accounting .
A ratio is a mathematical number calculated as a reference to relationship of two or more numbers and can be expressed as a fraction, proportion, percentage and a number of times. When the number is calculated ... For this purpose, the profitability, liquidity, solvency, etc. of a business, may be compared: (i) over a number of accounting ...
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