“CUET Accounts Notes by Artham Resources: Chapter 12 – Accounting Ratios. Explores the use of financial ratios for analyzing and interpreting a company’s performance, liquidity, profitability, and financial health.”
Content of Chapter 12 – Accounting Ratios:
- Introduction to Accounting Ratios
- Types of Accounting Ratios: Liquidity Ratios, Profitability Ratios, Solvency Ratios, and Efficiency Ratios
- Calculation and Interpretation of Liquidity Ratios: Current Ratio, Quick Ratio
- Calculation and Interpretation of Profitability Ratios: Gross Profit Ratio, Net Profit Ratio, Return on Investment
- Calculation and Interpretation of Solvency Ratios: Debt to Equity Ratio, Interest Coverage Ratio
- Calculation and Interpretation of Efficiency Ratios: Inventory Turnover Ratio, Accounts Receivable Turnover Ratio
- Use of Accounting Ratios for Financial Analysis and Decision-Making
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