Test Questions

Here are some of the questions that will help you understand this topic of ratio analysis in greater details.

1. What is a Ratio Analysis and why is it done?
2. Explain importance of Ratio Analysis?
3. What are the backlogs of Ratio Analysis?
4. What do you mean by Turnover Ratios?
5. What are Operating Ratios?
6. Explain details associated with Stock Turnover Ratios?
7. What are Liquidity Ratios and explain in details?
8. How are these ratios useful for determining certain business decisions?
9. Explain in details about Ratio Analysis being that ideal tool to understand financial results in a better manner
10. Why are these ratios important to determine financial aspects of a business organisation?

Links of Next Finance Topics:-

• Introduction to accounting and branches of accounting
• Preparation of final accounts
• Introduction of fund flow statement
• Introduction cash flow statement
• Ratio analysis significance of ratio analysis
• Advantages of ratio analysis
• Limitation of ratio analysis
• Classification of ratios
• Liquidity short term solvency ratios
• Long term solvency ratios
• Profitability ratios
• Activity or turnover ratios

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