Question

Consider the following statements.

Statement 1 - Ratio analysis helps in assessing the strengths and weaknesses in the performance of a business enterprise.

Statement 2 - "Ratio analysis is a tool for analyzing the financial statements of any enterprise."

विकल्प

• Only statement 1 is correct

• Only statement 2 is correct 

• Both the statement is correct

• None of these

Answer 1

Both the statement is correct

Explanation:

Ratio analysis is a financial analysis tool that entails the ways of calculating and evaluating financial ratios in order to determine the strengths and weaknesses of a company's performance.