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WAEC Accounting 2023 Theory — Question 11

Question 11 of 21 from the West African Examinations Council (WAEC) Accounting 2023 Theory paper, with the correct answer and a full explanation.

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4(b) State three users of accounting ratios.

Model answer

1. To show trends of business activities over a period of time. 2. In forecasting. 3. In inter-company comparisons. (Other acceptable: for interpreting the financial statements; to measure the ability of the business to meet its financial obligations; to determine the profitability of the business.)

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