Question

Objective of Ratio analysis is:​

Answer 1

Simplify accounting information. Determine liquidity or Short-term solvency and Long-term solvency. Short-term solvency is the ability of the enterprise to meet its short-term financial obligations.Assess the operating efficiency of the business.

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Answer 2

Answer:

Simplify accounting information.

Determine liquidity or Short-term solvency and Long-term solvency. Short-term solvency is the ability of the enterprise to meet its short-term financial obligations. Whereas, Long-term solvency is the ability of the enterprise to pay its long-term liabilities of the business.