Meaning of Financial Statement Ratio Homework Help
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Explaining the Meaning of Financial Statement Ratio
Financial ratios are an important part which helps in the assessment of such statements. There are various types of statements from which these ratios are calculated. Some of them are:
- Income Statement
- Cash Flow Statement
- Balance Sheet
- Statement to retain earnings
Organised explanation of this topic
Aside to the elucidated explanation, in our Meaning of Financial Statement Ratio homework help manual,we also provide an organised statement analysis.
- Statement of cash flow
- Income Statement
- Normal-size income statement
- Generalised discussion regarding it
- Income statement on whose foundation stands financial ratios
- Balance Sheet
- Usual-size balance sheet
- Generalised discussion related to balance sheet
- Balance sheeton whose foundation stands financial ratios
Limitation of financial statement ratio
Aside to providing information on benefits and other important details, via Meaning of Financial Statement Ratio assignment help manual,you can also come to know about various limitations of financial ratio. Some of the important ones comprise of:
- When different companies practice different accounting methods, this creates distortion. You can see it in the comparative form between LIFO and FIFO, equipment purchase and leasing, and much more.
- It really becomes difficult to analyse a company from good to bad on the grounds of ratio.
- Balance sheet of a firm can be distorted in case of situations like inflation.
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- We use balance sheet to explain monetary unit assumption, cost principle and much more
- With a number of examples, we try to provide students info and utilisation of financial statement ratio in real life cases
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