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Test Questions – Ratio Analysis

TEST QUESTIONS

  1. What is meant by Ratio Analysis ?
  2. List out the Liquidity Ratios ?
  3. What are Turnover Ratios ?
  4. What do you understand by Operating Ratios and Stock Turnover Ratio ?
  5. Briefly explain the objectives of Ratio Analysis.
  6. What are the Limitations Ratio Analysis ?
  7. Discuss some of the important ratios usually worked from the financial statements showing how they would be useful to top level management. ‘
  8. “Ratio analysis is a tool to examine the health of a business with a view to make the financial results more intelligible”. ‘
  9. Discusses the significance of various accounting ratios in the analysis of financial statements.