Ratio analysis is a process of determining and presenting the quantities relationship between two accounting figures to calculate the strength and weaknesses of a business. interview questions and answers on ratio analysis Question 3 on the calculation and analysis of ratios was more mixed, with.Question 2 B. In simple word, ratio analysis … A: Multiple Choice Questions. 4. Test your knowledge of the financial ratios with multiple choice questions and quizzes. Price-earnings ratio. Ratio analysis is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability.This type of analysis … The following are the final. Financial analysis … Explain the limitations of ratio analysis.RATIO ANALYSIS EXEMPLAR EXERCISE AND THEORY NOTE. Cash coverage ratio… Days sales in inventory. The ratios question is split into three main parts… a) Where you are asked to calculate 5/6 specific ratios; b) Where you can use your own choice of ratios to answer a particular question; and c) Where you are asked a theory question … Skip to content. Top 10 Limitations of Ratio Analysis. Financial analysis is the process of using fi nancial information to assist in investment and fi nancial decision making. An activity ratio relates information on a company's ability to manage its resources (that is, its assets) efficiently. Ans. A financial leverage ratio provides information on the degree of a company's fixed financing obligations and its ability to satisfy these financing obligations. Managers will use ratio analysis … There are certain limitations for ratio analysis as it only considers quantitative aspects and fully ignores the qualitative aspects, it … In your answer refer to the main activity of the. A shareholder ratio describes the company's financial … Menu. Ratio analysis is a useful management tool that will improve your understanding of financial results and trends over time, and provide key indicators of organizational performance. Ratio Analysis - 1 - MCQs with answers 1. It focuses on ratios that reflect the profitability, efficiency, financing leverage, and other vital information about a business. Theory Exercise. 3. ratios that provide insight about what the market for shares and bonds believes about future prospects of the fi rm. Fixed asset turnover. What is Ratio Analysis? When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as Test your knowledge of the financial ratios with multiple choice questions and quizzes. Examples of Questions on Ratio Analysis. The DuPont Analysis uses the following ratios except: debt ratio … Define the term ratio analysis. 1. Which of the following is considered a profitability measure? 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