MOST IMPORTANT MCQ
RATIO ANALYSIS
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, Question 1
Q. Assertion (A): If the financial statements contain some errors,
the financial ratios would also present an erroneous scenario.
Reason (R): Accounting ratios exhibit relationship, if any between
accounting numbers extracted from financial statements.
a. Both (A) and (R) are true and (R) is correct explanation.
b. Both (A) and (R) are true but (R) is not correct explanation.
c. (A) is true but (R) is not.
d. (R) is true but (A) is not.
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, Accounting Ratios
It needs to be observed that accounting ratios exhibit relationship, if any between accounting n
extracted from financial statements.
They are essentially derived numbers and their efficacy depends a great deal upon the basic numbe
which they are calculated.
Hence, if the financial statements contain some errors, the derived numbers in terms of ratio analysis
also present an erroneous scenerio.
www.everstudy.co.in
RATIO ANALYSIS
UGC NET COMMERCE / MANAGEMEN
Today
11:30 AM
LIVE SESSION BY SUMANT SIR
www.everstudy.co.in
, Our Courses
UNIT SNAPSHOT | NET COMMERCE & MANAGEMENT FREE
UNITWISE PAST PAPERS (EXPLAINED) |
Rs. 549
COMMERCE & MANAGEMENT
COMPLETE TEST SERIES | COMMERCE & MANAGEMENT Rs. 1299 R
VIDEO COURSE ON NEW TOPICS |NET COMMERCE Rs. 2499 R
VIDEO COURSE ON LEGAL ASPECTS OF BUSINESS Rs. 1199
www.everstudy.co.in
, Question 1
Q. Assertion (A): If the financial statements contain some errors,
the financial ratios would also present an erroneous scenario.
Reason (R): Accounting ratios exhibit relationship, if any between
accounting numbers extracted from financial statements.
a. Both (A) and (R) are true and (R) is correct explanation.
b. Both (A) and (R) are true but (R) is not correct explanation.
c. (A) is true but (R) is not.
d. (R) is true but (A) is not.
www.everstudy.co.in
, Accounting Ratios
It needs to be observed that accounting ratios exhibit relationship, if any between accounting n
extracted from financial statements.
They are essentially derived numbers and their efficacy depends a great deal upon the basic numbe
which they are calculated.
Hence, if the financial statements contain some errors, the derived numbers in terms of ratio analysis
also present an erroneous scenerio.
www.everstudy.co.in
