Practice - Uses of Ratio Analysis
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Practice Questions
Test your understanding with targeted questions
Define liquidity ratios in your own words.
💡 Hint: Think about what a company needs to pay off soon.
Can the same ratio be used for different companies in different industries?
💡 Hint: Consider how industries can have different standards.
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Interactive Quizzes
Quick quizzes to reinforce your learning
Ratio analysis is primarily used to assess:
💡 Hint: Focus on what financial metrics provide insight.
True or False: Ratio analysis disregards past financial data.
💡 Hint: Think of the data sources of ratio analysis.
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Challenge Problems
Push your limits with advanced challenges
Company X reports a current ratio of 1.5. If their current liabilities amount to ₹60,000, what are their current assets?
💡 Hint: Use the formula for the Current Ratio.
Discuss how major economic events could affect your trend analysis findings for a business.
💡 Hint: Consider external factors outside a company's control.
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