GK
ACCOUNTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ratios may be classified as -
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Profitability ratios
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Financial ratios
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Leverage ratios
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All of the above
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Explanation:
Detailed explanation-1: -Under the traditional classification, the ratios are classified as: (i) Balance sheet ratios, (ii) Income statement ratios and (iii) Inter-statement ratios.
Detailed explanation-2: -There are six basic ratios that are often used to pick stocks for investment portfolios. These include the working capital ratio, the quick ratio, earnings per share (EPS), price-earnings (P/E), debt-to-equity, and return on equity (ROE).
Detailed explanation-3: -Profitability ratios. Liquidity ratios. Solvency ratios. Valuation ratios or multiples.
Detailed explanation-4: -Liquidity ratios. Leverage ratios. Efficiency ratios. Profitability ratios. Market value ratios.
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