• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Ratios

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Ratios

  • This topic has 2 replies, 2 voices, and was last updated 1 day ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • June 12, 2025 at 11:19 am #717902
    harsha..
    Participant
    • Topics: 5
    • Replies: 9
    • ☆

    Which four of the following statements about accounting ratios are correct?
    1. They are useful when comparing a business results from one year to the next
    2. Gearing will indicate how risky a business is
    3. Interest cover will give an investor information about whether or not a dividend will be paid
    4. If there is an increase in any calculated accounting ratio, it is seen as favourable
    5. They help the user of financial information to focus attention on significant issues
    6. They can provide information about the profitability, liquidity, efficiency and position of the company
    7.Ratios can be affected by a business choice of accounting policies
    8.They provide all the information needed for interpreting company accounts

    Sir , what is your view on this ,as to me five statements seems to be correct (1,2,5,6,7)

    June 13, 2025 at 9:04 am #717921
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    5 is not really correct because it is up to the user to decide which matters are significant and then decide what ratios are most relevant.

    What does the printed answer in your book say?

    June 13, 2025 at 9:04 am #717922
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    5 is not really correct because it is up to the user to decide which matters are significant and then decide what ratios are most relevant.

    What does the printed answer in your book say?

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • EricObi on IAS 37 – Best estimate – ACCA Financial Reporting (FR)
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • John Moffat on MA Chapter 4 Questions Cost Classification and Behaviour
  • maryrena77 on The nature and structure of organisations – ACCA Paper BT
  • vi234 on MA Chapter 4 Questions Cost Classification and Behaviour

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in