Which of the following statements are true about ratio analys is?
1. Ratio analysis is useful in financial analysis.
2. Ratio analysis is helpful in communication and coordination.
3. Ratio analysis is not helpful in identifying weak spots of the business.
4. Ratio analysis is helpful in financial planning and forecasting.
A. 1, 2 and 4
B. 1, 3 and 4
C. 1, 2 and 3
D. 1, 2, 3 and 4
Answer: Option A
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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