Question

For ascertaining pre incorporation profits, establishment expenses are apportioned in the______
    

 Gross ratio
    

 Time ratio
    

 Sales ratio
    

 Purchase ratio

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Answer 1

Explanation:

time ratio

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Answer 2

Time Ratio

Time Ratio is a dissolvability proportion that assesses the capacity of a firm to reimburse its revenue on the obligation or the getting it has made. It is determined as the proportion of EBIT (Earnings before Interest and Taxes) to Interest Expense. A higher proportion is great as it demonstrates the Company is procuring higher than it owes and will actually want to support its commitments. Conversely, a lower proportion demonstrates the organization will most likely be unable to satisfy its commitment.