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Chapter: 12th Accountancy : Ratio Analysis

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Objectives of ratio analysis

Following are the objectives of ratio analysis:

Objectives of ratio analysis

Following are the objectives of ratio analysis:

·        To simplify accounting figures

·        To facilitate analysis of financial statements

·        To analyse the operational efficiency of a business

·        To help in budgeting and forecasting

·        To facilitate intra firm and inter firm comparison of performance

 

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