Accounting Ratios | Financial Ratios: Learning Objectives: Define and explain the term accounting ratios. What are advantages and limitations of using accounting or financial ratios. How financial ratios are classified. Ratios simply means one number expressed in terms of another. A ratio is a
Accounting ratios/Financial ratios
Accounting ratio is a magnitude of two numerical values that are selected and taken from an enterprise’s financial statements.Accounting ratio is also called a financial ratio.