When the concept of ratio is defined in respect to the item shown in the financial statements, it is termed as
A)Accounting ratio
B)Financial ratio
C)costing ratio
D)none of the above

Question

Quizplus · Accepted Answer

Financial ratio refers to the concept of ratio when it is defined in respect to the items shown in the financial statements. These ratios are used to evaluate the financial condition and performance of a business.

When the Concept of Ratio Is Defined in Respect to the Item