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The ratios are used for the analysis of two or more any type of related items and express them in arithmetic expression but Accounting Ratios are used to analyze the only related financial items.
“Accounting Ratios” is the sub-group of the ratio, These are used by accountants or other related parties to analyzing the interdependent Financial items of the financial statement of the business. Accounting ratios are used to know the profitability, efficiency and financial position of the company.
“The term accounting ratio is used to describe significant relationships which exist between figures shown in a Balance Sheet, in a Statement of Profit and Loss, In a budgetary control system or any part of the accounting organisation.”
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Question wise solution of all Questions of Chapter No. 4 - Accounting Ratio – USHA Publication Class +2 (Part 2) – Solutions are shown below: –
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Chapter No. 4 - Accounting Ratio – USHA Publication Class +2 (Part 2) – Solution", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Academic Subjects.
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