**Test Questions**

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

- What is a Ratio Analysis and why is it done?
- Explain importance of Ratio Analysis?
- What are the backlogs of Ratio Analysis?
- What do you mean by Turnover Ratios?
- What are Operating Ratios?
- Explain details associated with Stock Turnover Ratios?
- What are Liquidity Ratios and explain in details?
- How are these ratios useful for determining certain business decisions?
- Explain in details about Ratio Analysis being that ideal tool to understand financial results in a better manner
- 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

**Links of Next Finance Topics:-**

- Ratio analysis problems and solutions
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- Special case of traveling sales man problem
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