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Question
Give one word/term/ phrase for the following statement
A particular mathematical number showing relationship between two accounting figures.
One Line Answer
One Word/Term Answer
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Solution
A particular mathematical number showing relationship between two accounting figures. - Accounting Ratio
Explanation: Accounting ratio expresses the relationship between two accounting variables. It is one amongst the various tools available for financial analysis. Financial ratios are calculated from the financial statements to derive conclusions regarding liquidity, profitability and solvency of a business. They are used to measure the efficiency and profitability of a company based on the financial reports prepared by the business. They facilitate the decision-making task of the management.
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