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प्रश्न
State whether the following is True or False:
Ratio analysis establishes a relationship between two financial statements.
सत्य या असत्य
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उत्तर
This statement is true.
Explanation:
Ratio analysis compares and expresses quantitative relationships between related items drawn from the financial statements (for example, current assets to current liabilities for the current ratio), thereby establishing relationships used to assess liquidity, profitability, efficiency, and solvency.
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