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P2 C5 ACCOUNTNG RATIOS AND ANALYSIS — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C5 ACCOUNTNG RATIOS AND ANALYSIS1 Mark
Question
When ratio is useful?
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Answer

Ratios are useful when they are compared with any standards.
  • e.g. Ratios compared with ratio developed by the business entity, comparison with ratios of industry and competitors etc

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