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Ratio Analysis is Useful for Inter-firm Comparison. - Book Keeping and Accountancy

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Question

Ratio analysis is useful for inter-firm comparison.

Solution

True

Explanation:

Ratio analysis helps an organisation to compare the results of the business with other firms, industries and also helps in appraising the progress and growth of the organisation over the years. It facilitates comparison and helps in determining whether the business is doing better than other firms and if it is not, then what are its reasons and how to overcome them.

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APPEARS IN

 2013-2014 (March) (with solutions)
Question 1.4.4 | 1.00 mark
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Ratio Analysis is Useful for Inter-firm Comparison. Concept: Ratio Analysis and its Types.
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