Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 10Q
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Question
How are the ratios useful?
Expert Solution
Step 1
Answer:
Ratio analysis is allowing a comparison two firm’s annual financial statement using certain financial measures. This may also be used for determining an entity’s number of significant measures.
Step 2
The following are the different significant financial ratio, they are
- Turnover ratios,
- Profitability ratios,
- Liquidity ratios,
- Debt management ratios,
- Asset management ratios, and
- Market value ratios.
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