Accounting ratios are only as good as the data on which they are based.’ Discuss. What does ‘ROCE’, EPS and P/E ratios and why are they important to a business entity. iii. What is Capital gearing and how might it be calculated What is the possible link between the following ratios: (a) profitability and efficiency; (b) profitability and liquidity; (c) profitability and investment,and (d) efficiency and liquidity.
Accounting ratios are only as good as the data on which they are based.’ Discuss. What does ‘ROCE’, EPS and P/E ratios and why are they important to a business entity. iii. What is Capital gearing and how might it be calculated What is the possible link between the following ratios: (a) profitability and efficiency; (b) profitability and liquidity; (c) profitability and investment,and (d) efficiency and liquidity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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- ‘Accounting ratios are only as good as the data on which they are based.’ Discuss.
- What does ‘ROCE’, EPS and P/E ratios and why are they important to a business entity.
iii. What is Capital gearing and how might it be calculated
- What is the possible link between the following ratios: (a) profitability and efficiency; (b) profitability and liquidity; (c) profitability and investment,and (d) efficiency and liquidity.
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