English

State whether the following statement is True or False. A ratio reflects quantitative and qualitative aspects of results.

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Question

State whether the following statement is True or False.

A ratio reflects quantitative and qualitative aspects of results.

True or False
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Solution

This statement is false.

Explanation:

A ratio is a quantitative (monetary) relationship derived from financial statement figures and therefore reflects numerical/quantitative aspects; it does not capture non‑monetary or qualitative factors, so the statement is incorrect.

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Chapter 5: Accounting Ratios - Intext Questions [Page 198]

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NCERT Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
Chapter 5 Accounting Ratios
Intext Questions | Q 1. (f) | Page 198
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