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easyMCQCUET Accountancy 2025 30 May Shift 12026Accountancy
1 mark

Which technique is used to assess profitability, solvency and efficiency of an enterprise through quantitative mathematical relationship variables?

  1. A
    Trend Analysis
  2. B
    Ratio Analysis
  3. C
    Cash Flow Analysis
  4. D
    Comparative Statements

Solution & Step-by-step Explanation

Ratio Analysis is the specialized financial analysis tool that evaluates an enterprise's liquidity, solvency, operational efficiency, and profitability by computing mathematical relationships of items derived from the financial statements.

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Which technique is used to assess profitability, solvency and efficiency of an enterprise through quantitative mathematical relationship variables?
A
Trend Analysis
B
Ratio Analysis
C
Cash Flow Analysis
D
Comparative Statements

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Financial StatementsRatiosAnalysis Techniques

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