Download free printable worksheets Accountancy pdf of CBSE and kendriya vidyalaya Schools as per latest syllabus in pdf, CBSE Class 12 Accountancy Ratio Analysis. Debts = Long-term borrowing + Long-term provisions, Equity/Shareholders’ Funds = Share Capital + Reserves and Surplus – Non – Trading Investments, Equity/Shareholders’ Funds = Fixed Assets (Tangible and Intangible) + Non Current Investment (Excluding Non Trading investment) +Long Terms Loans and Advances + Current Assets – Current Liabilities – Long –term borrowings – Long – term Provision. 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Ideal Ratio: No ideal ratio but a high ratio indicates higher safety to lenders and low ratio represents risky position. Objective & Significance-Objective is to ascertain the amount of profit available to cover the interest charge. Further, a ratio must be calculated using, numbers which are meaningfully correlated. Historical financial statements indicate what has happened in the past. Total Assets = Fixed Assets (Tangible and Intangible) + Non Current Investment (Excluding Non Trading Investment) + Long Term Loans and Advances + Current Assets. These statements provide financial data which require analysis, comparison and interpretation for taking decision by the external as well as internal users of accounting information. NCERT Class 12 Accountancy Chapter 9Statement Analysis Tools and Accounting Ratios Revision Notes Download in PDF With the help of revision notes students can revise the syllabus in a concise manner. Management of the company has the information about the company’s future plans and policies. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. Meaning of Accounting Ratio. 858. To provide information derived from financial statements useful for. Also download collection of CBSE books... Download Class 12 Accountancy assignments. What are liquidity ratios? Thus, the limitations of financial statements also form the limitations of the ratio analysis. Proprietary Ratio: It shows the relationship between Proprietors’ Funds/shareholders’ Funds and Total Assets of the business. Generally a higher ratio indicates better profitability. Significance: It measures the proportion of total assets financed by the Proprietors of the business. Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Accounts Accounting ratios. Generally a higher ratio indicates better profitability. Cost of sale 19,20,000 Fixed Assets 14, 40,000. Comment. 4. purchases to furniture is 3 (3,00,000/1,00,000) but it hardly has any relevance. Students should solve the CBSE issued sample papers to understand the pattern of the question paper which will come in class 12 board exams Is there any Free Test Series for NEET 2021. As a technique of financial analysis, accounting ratios measure the comparative significance of the individual items of the income and position statements. Inventory Turnover Ratio : It is also called as Stock turnover ratio. Explain. points out the areas which require investigation. 5. 3. 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