Question

Ratio analysis is a tool for analysing the financial statements of any enterprise.

Answer 1

Explanation:

Ratios are the traditional tools used to analyze financial statements. Ratio analysis examines four aspects of a company's financial condition and performance: profits, liquidity, financial leverage and efficiency. The ultimate objective of a business is to make a profit.

Answer 2

Ratios are the traditional tools used to analyze financial statements. Ratio analysis examines four aspects of a company's financial condition and performance: profits, liquidity, financial leverage and efficiency. The ultimate objective of a business is to make a profit.