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Accountancy · 2023 · 3 marks
CBSE 2023 · Region 3 · Set 2 · Q32
'It is a technique whic h involves regrouping of data by application of arithmetical relationships.' Identify the technique and state any two…
'It is a technique whic h involves regrouping of data by application of arithmetical relationships.' Identify the technique and state any two advantages of the technique identified above.
Marking-scheme solution
Ratio Analysis
Advantages of Ratio Analysis ( any two):
(i)
It helps to understand efficacy of decisions.
(ii)
It simplifies complex figures and establishes relationships.
(iii)
It is helpful in comparative analysis.
(iv)
It helps in identification of problem areas.
(v)
It enables SWOT analysis.
(vi)
It helps comparisons with various benchmarks.
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.