Commerce Study™ (MCQs)
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📣 Biggest Announcement for CA Aspirants 📣
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📣 Biggest Announcement for CA Aspirants 📣
Biggest Giveaway in History 🎁
Lucky students will win Exciting Rewards 🥳
🗓 31st Aug
🕕 6.00pm
Hurry Up !! Join the WhatsApp group for more updates ⬇️
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📍Meaning of Ratio Analysis📍
➖ Analysis of financial statement with the help of ratio can be termed as ratio analysis.
➖ Examination and interpretation of the relationship between numerical figures.
📍Objectives of Ratio Analysis📍
➖ Provides analysis of profitability, liquidity and the solvency of the business.
➖ Traces the area which seeks more attention.
➖ Helps in making estimates.
➖ Supports in comparing the performance with best industry standards.
📍Advantages of Ratio Analysis📍
➖ Assists in comparative studies.
➖ Simplifies complex figures.
➖ Supports financial analysis.
➖ Helpful in forecasting.
➖ Helps in judging the operating efficiency of a business.
🔰 Methods of Expressing Accounting Ratios 🔰
1. Proportion Ratio: In this form, the relationship between the two items is directly expressed in proportion. For e.g. Current Ratio explains the relationship between Current Assets and Current Liabilities.
2. Times: In this form, the ratio is expressed in a number of times, a particular item in comparison to other items.
3. Percentage: In this form, the relationship between the two items is expressed in percentage. For e.g. Net Profit expresses the relationship between Net profit and Revenue from Operations.
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📣 Reminder for CA Students 📣
Today (23rd August 2023) is last day for filling your exam form without late fees.
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From Team CommerceStudy 😊
💰 Measures of Money Supply 💰
RBI uses four measures of money supply denoted as M1, M2, M3 & M4.
M1 = Currency notes and coins in circulation with public (but not those held by banks) + Net demand deposits with the commercial banks + Other deposits.
M2 = M1 + Deposits with post-office savings banks.
M3 = M1 + Fixed deposits with banks.
M4 = M3 + All post-office savings bank deposits.
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