Chapter No. 4 – Accounting Ratio – USHA Publication Class +2 (Part 2) – Solution

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.

Free Accounting book Solution - Class 11 and Class 12

What is an Accounting Ratio? 

“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. 

Definition of the Accounting Ratios:

“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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Accounting Ratios – Meaning and Definition

Chapter No. 4 – Accounting Ratio – USHA Publication Class +2 (Part 2) – Solution

Question wise solution of all Questions of Chapter No. 4 – Accounting Ratio – USHA Publication Class +2 (Part 2) – Solutions are shown below: –