In ratio analysis, 'proforma analysis' implies
A. making a list of all the present ratios of the firm
B. comparison of liquidity ratios with other kind ofratio of the firm
C. comparison of the ratio of the firm relating to the performance of the firm
D. comparison of the firm's past and current ratios with future ratios to ascertain the relative strengths and weakness in the past and future
Answer: Option D
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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