w is the use of financial statement ratio

Q: What is the notes to financial statement? Describe its content.

A: Financial statements  consists of profit or loss account, balance sheet,cash flow statement  and…

Q: What is analysis of financial statements?

A: Explain the  meaning of financial statement analysis:Financial statements: Financial statements are…

Q: a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity

A: a. Ratio of fixed assets to long-term liabilities  Fixed assets / Long-term liabilities = $793,900 /…

Q: How to prepare report on financial ratios

A: The ledger accounts will be prepared taking the journal as the source document. The ledger accounts…

Q: understanding the structure of balance sheets and income statements.

A: Income statement:   It is a financial statement prepared by a company that reports revenues and…

Q: what are the Measurement bases – elements of financial statements ?

A: Financial statements are the records maintained by the company to record the business transactions…

Q: Who uses financial ratios and how the ratios are used?

A: Financial ratios are the important tool for measuring company’s performance in terms of their profit…

Q: What are the financial ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: explain financial ratios and financial cycle

A: Financial ratios are designed using the numerical values taken from financial statements to obtain…

Q: What are the importance of accounting ratios

A: Importance of accounting ratios: Debt/Equity ratio Working Capital ratio Inventory Turnover ratio…

Q: Identify the major types of financial ratios and what they measure.

A: Accounting ratios are calculated to measure the liquidity, solvency, and profitability of the…

Q: ds of financial statement analysis

A: The process of analyzing a company's financial statements in order to make business decisions is…

Q: Define a compensating balance. How are compensating balances reported in financial statements?

A: Compensating balance: A compensating balance is a minimum amount of cash that must be maintained by…

Q: How are the income statement and balance sheet connected?

A: Income statement: The financial statement which reports revenue and expenses from business…

Q: What are the different types of liquidity ratios in accounting?

A: Liquidity measures: Liquidity measures denote a company’s capacity to meet its current liabilities.…

Q: What is the basic objective in looking at trends in financial ratios and other data?

A: Financial ratios refer to the accounting ratios which are calculated using the values of two…

Q: WHAT IS THE MEANING OF FINANCIAL STATEMENT?

A: Financial statements are the written records of the business activities which show the financial…

Q: s of financial ratios? Next t e:

A: Main type of Financial Ratio are (1) Liquidity Ratio (2) Solvency Ratio (3) Activity Ratio (4)…

Q: Distinguish between horizontal and vertical analysis of financial statement data.

A: Following is the difference between horizontal and vertical analysis of financial statement data:…

Q: Explain the difference between financial reporting and financial statements.

A: Financial information refers to the information/data related to the business that is related to the…

Q: Explain why ratios that compare an income statement account with a balance sheet account should…

A:

Q: financial ratios?

A: Ratio is tools to analyse the financial data of an organisation. Some Financial ratio are as  Gross…

Q: Explain what are the elements of financial statements?

A: The elements of financial statements are as follows: Assets Liabilities, Equity, Revenues and…

Q: What is the purpose of calculating a set of financial ratios?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Draw the balance sheet and the income statement. Compare them with the items and figures on the…

A: There are three financial statements namely the balance sheet, income statement and the cash flow…

Q: What is the relationship among the financial statements?

A: Financial Statements: These are records of the activities relating to finance and business. The…

Q: Who are the basic users of financial statements, and what are the financial ratios that are useful…

A: Financial statements include balance sheet, income statement, statement of changes in owner's…

Q: laborate the uses of financial statement analysis.

A: Financial statements: The written records that describe the activities of the business and the…

Q: Distinguish between ratio analysis and percentage analysis relative to the interpretation of…

A: Financial statement: A record of financial activities and financial position of the company or an…

Q: When should an average amount be used for the numerator or denominator? When the denominator is a…

A: The average amount is used for maintaining the nearest accuracy of the financial ratio. It helps the…

Q: Describe how you would do a financial analysis (refer to trends and ratios)

A: Financial analysis is a process of determining performance and compatibility by evaluating…

Q: What is the meaning of each financial ratio?

A: Introduction: A financial ratio is a statistic that is frequently provided by two numbers acquired…

Q: What are common-size financial statements?

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: ratios used in Financial Statements

A: Meaning of Financial Ratios Financial ratios are also called as accounting ratios. Any two aspects…

Q: What is vertical analysis? What item is used as the base for the income statement? What item is used…

A: Financial Statement Analysis: Financial information of business is analyzed by the analysts,…

Q: What Are Financial Statements? Name The Major Financial Statements?

A: Financial Statements are very important documentation of an organisation's financial matters and…

Q: What do the financial statements include?

A: Financial statements are basic as they give significant insights concerning the money related…

Q: 2. Current ratio x 3. Debt-to-equity ratio x

A: Solution:- 2)Calculation of current ratio as follows under:- Current ratio =Current assets / Current…

Q: Perform ratio analysis to the financial statements

A: Vertical analysis is a technique, which can be used to analyze and evaluate financial statements,…

Q: What does the purpose of compare financial statement?

A: comparing of financial statement refers to the act of comparing the current year's performance with…

Q: What is the Financial Statement Analysis?

A: solution concept The given are the indicators of the liquidity ratio These ratio explains how liquid…

Q: The synonyms of financial statements are? a. Financial analysis b. Financial reports c. Financial…

A: Financial statements are those statements which are prepared at the end of accounting period in…

Q: What are the financial ratios used and what information do they provide?

A: Financial Ratios: They include all the ratios which express financial position of the concern. It…

Q: What are the usefulness of financial statements

A: >Financial statements are the public documents, and are prepared at the end of period as part of…

Q: Discuss the use of horizontal and vertical analysis of financial statements.

A: Horizontal and Vertical analysis are two types of analysis which are used for reviewing financial…