✓ Board-verified
Accountancy · 2023 · 3 marks
CBSE 2023 · Region 1 · Set 1 · Q32
'It is a technique which involves regrouping of data by application of arithmetical relationships.' Identify the technique and state its two…
'It is a technique which involves regrouping of data by application of arithmetical relationships.' Identify the technique and state its two advantages.
Marking-scheme solution
Ratio Analysis
Advantages of Ratio Analysis (Any two):
1. It helps to understand efficacy of decisions.
2. It simplifies complex accounting figures and establishes relationships.
3. It is helpful in comparative analysis.
4. It helps in identification of problem areas.
5. It enables SWOT analysis.
6. It helps comparisons with various benchmarks.
More from Accounting Ratios
- The current ratio of Jack Ltd. is 3·2: 1 and the quick ratio is 1·5: 1. The excess of current assets over quick assets was represented by inventories…2025
- The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If, its working capital turnover ratio is 6 times, its…2023
- Prepare a 'Common S ize Balance Sheet' from the following B alance Sheet of Shree Ltd. as at 31st March, 2022: Balance Sheet of Shree Ltd. as at 31st…2022
- Identify and state the significance of any two ratios that are calculated to measure the efficiency of operations of business based on effective…2023
- From the following information, calculate 'Interest Coverage Ratio': Shareholders' funds 30,00,000 8% Long-term debt 10,00,000 Net profit after tax ₹…2026
- The quick ratio of Theta Ltd. is 0.8:1. Which of the following transactions will result in decrease in this ratio?2026
- Which of the following is not a Solvency Ratio?2023
- Calculate Gross Profit Ratio from the following information: Average Inventory ₹ 1,60,000; Inventory Turnover Ratio 8 times, Average Trade…2023
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.