English

1 - Ratio analysis helps in assessing the strengths and weaknesses in the performance of a business enterprise. 2 - "Ratio analysis is a tool for analyzing the financial statements of any enterprise." -

Advertisements
Advertisements

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."

Options

  • Only statement 1 is correct

  • Only statement 2 is correct 

  • Both the statement is correct

  • None of these

MCQ

Solution

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.

shaalaa.com
Tools of Analysis of Financial Statements
  Is there an error in this question or solution?
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×