Question : The objectives of Ratio Analysis are 

Option 1: To locate the weak spots of business which need more attention.

Option 2: To provide a deeper analysis of the liquidity, solvency, activity and profitability of the business.

Option 3: To provide information for making a cross-sectional analysis, i.e., for making a comparison with that of some selected firms in the same industry.

Option 4: All of the above 

Question : Which of the following is not the objective of Ratio Analysis?

Option 1: Calculate profit and loss of the business 

Option 2: To provide deeper analysis of the liquidity, solvency, activity and profitability of the business.

Option 3: To provide information for making time-series analysis, i.e., for making comparison of a firm’s present ratios with its past ratios.

Option 4: To provide information useful for making estimates and preparing the plans for the future

Question : Which of the following is not the objective of Ratio Analysis?

Option 1: Calculate profit and loss of the business 

Option 2: To provide deeper analysis of the liquidity, solvency, activity and profitability of the business.

Option 3: To provide information for making time-series analysis, i.e., for making comparison of a firm’s present ratios with its past ratios.

Option 4: To provide information useful for making estimates and preparing the plans for the future

Question : Which of the following is not the Objective of Ratio Analysis?

Option 1: To identify the areas of the business that require more attention

Option 2:

Not provide data for cross-sectional analysis, for comparison with some chosen enterprises in the same industry

Option 3:

To give a more thorough study of the business's liquidity, solvency, activity, and profitability

Option 4: To provide data that will be beneficial for estimating and creating future strategies

Question : Which ratios provide information critical to the firm's long-term operation?

Option 1: Profitability 

Option 2: Solvency

Option 3: Activity

Option 4: Liquidity