Question

Q. 8. Write any two objectives of Accounting Ratios.
What do you understand by the longterm loans.
Write the meaning of analysis of Financial Statements.
Or,
Write the advantages or uses of Accounting Ratios. (any two)
Q. 10. Write the limitations of Accounting Ratios, (any two)
Q.9.​

Answer 1

Answer:

Now, we have previously learned what ratios are. They are a comparison of two numbers with respect to each other. Similarly, in finance, ratios are a correlation between two numbers, or rather two accounts. So two numbers derived from the financial statement are compared to give us a more clear understanding of them.