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State Whether Following Statements Are True Or False : - Book Keeping and Accountancy

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Question

State whether following statement is true or false.
Ratio Analysis is useful for inter-firm comparison.

Options

  • True

  • False

MCQ
True or False
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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, what are the improvement areas and the reasons for them.

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Chapter 9: Analysis of Financial Statements - Exercise 9.1 (Objective Questions) [Page 376]

APPEARS IN

Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 9 Analysis of Financial Statements
Exercise 9.1 (Objective Questions) | Q C. 7. | Page 376
Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 12 Analysis of Financial Statements
Exercise 1 | Q 8 | Page 384
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