Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison. To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

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Answer 1

Question

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

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Answer 2

Question

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

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Answer 3

Question

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

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Answer 4

Question

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

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Answer 5

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

Answer 6

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

Answer 7

Chapter 14, Problem 18Q

(a)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

Answer 8

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

Answer 9

(b)

To determine

Ratio Analysis: Ratio analysis is a technique used to analyze the financial statements of the firm which can be used to frame policies and plans. Ratio analysis shows the relationship between the two items of financial statements. It can be used for comparison.

To explain: (a) meaning of trading on equity, (b) determination of profitability of trading on equity.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Solution Summary: The author explains that Ratio analysis is a technique used to analyze the financial statements of the firm. It can be used for comparison.

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