Description
Abstract
This write up examine various theoretical views about“Impact of Accounting Ratio in Decision Making. It identifies the importance of ratio analysis, its limitation and how it can be effectively utilized in Decision Making. It is the aim of any business firm tries to channel their efforts towards bringing the above aim into reality. However, this aim of profit optimization cannot be achieved in isolation. That is without regards to a means discovering weak points and strength in order take action immediately. One of the strategies of performance evaluation is ratio analysis. The ratio analysis technique evaluates the performance of business firms based on information contained in their financial statement. Ratio analysis enables mangers to ascertain the effectiveness and efficiency of operation as regards the management of the assets entrusted in their care. In carrying out those researches, five chapters were developed, the background of the study, literature review and the collection, selection and tested the data and summary, conclusion and recommendations on the way of improvement. In conclusion ratio analysis was proved to be an important tool and guide to effective asset management of an organization
Reviews
There are no reviews yet.