Practice Objectives of Ratio Analysis - 1.3 | ICSE Class 12 Accounts – Chapter 5: Ratio Analysis | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is one objective of ratio analysis?

💡 Hint: Think about how numbers are made easier to understand.

Question 2

Easy

Name a financial ratio that helps in decision-making.

💡 Hint: It assesses the company's reliance on debt.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the primary purpose of ratio analysis?

  • To confuse stakeholders
  • To analyze financial statements
  • To avoid decision-making

💡 Hint: Remember the main focus of financial analysis.

Question 2

True or False: Ratio analysis helps in assessing only a company's past financial performance.

  • True
  • False

💡 Hint: Consider how analysis influences future decisions.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given a set of financial data, calculate the Current Ratio and explain its significance for the business's short-term obligations.

💡 Hint: Consider what the ratio needs to achieve for financial health.

Question 2

Analyze a company’s Debt-Equity Ratio and discuss how it reflects their financial leverage and risk profile.

💡 Hint: Think about how debt impacts business strategies and stability.

Challenge and get performance evaluation