When the concept of ratio is defined in respected to the items shown in the financial statements it ...........

General Accounting Principles Ratio analysis

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When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as:

Accounting ratio

Liquidity Ratio

Costing ratio

Pure ratio

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Explanation:

A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors.