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When a ratio is defined in respect to the items shown in the financial statements, it is termed as ___

A. Accounting ratio
B. Financial ratio
C. Costing ratio
D. None of these

1 Answer

4 votes

Final answer:

The correct answer is A. Accounting ratio.

Step-by-step explanation:

The correct answer to this question is A. Accounting ratio. When a ratio is defined in respect to the items shown in the financial statements, it is called an accounting ratio. These ratios are used to evaluate the financial performance and position of a company. They compare different items on the financial statements, such as assets, liabilities, and revenues, to provide insights into the company's financial health.

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User XylemRaj
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