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

Option 1: Profitability 

Option 2: Solvency

Option 3: Activity

Option 4: Liquidity

Question : The following groups of ratios primarily measure risk:

Option 1: Liquidity, activity and profitability

Option 2: Liquidity, activity and debt

Option 3: Liquidity, debt and profitability

Option 4: Liquidity, activity and common stock