GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Accounting ratios can be expressed in the following forms:
A
Times
B
Fraction
C
Percentage
D
All of the above
Explanation: 

Detailed explanation-1: -The general form of representing a ratio of between two quantities say ‘a’ and ‘b’ is a: b, which is read as ‘a is to b’. The fraction form that represents this ratio is a/b.

Detailed explanation-2: -What Are the Types of Ratio Analysis? Financial ratio analysis is often broken into five different types: profitability, solvency, liquidity, turnover, and earnings ratios.

Detailed explanation-3: -Debt-to-Equity Ratio = Liabilities (Total) / Shareholder Equity (Total) Debt Ratio = Total Liabilities/Total Assets. Current Ratio = Current Assets/Current Liabilities. Quick Ratio = [Current Assets – Inventory – Prepaid Expenses] / Current Liabilities. More items

Detailed explanation-4: -Profitability ratios. Liquidity ratios. Solvency ratios. Valuation ratios or multiples.

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