CUET Accountancy 2025 13 May Shift 2 PYQs

Which technique is used to assess profitability, solvency and efficiency of an enterprise through the technique of ratio analysis?

The standard Debt-Equity ratio is

Which of the following are the objectives of Ratio Analysis?

(A) To know the areas of the business which need more attention.

(B) To provide a deeper analysis of the profitability, liquidity, solvency and efficiency levels in the business.

(C) To know about the potential areas which can be improved with the effort in the desired direction.

(D) To provide information derived from financial statements useful for making projections and estimates for the future.

Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only