Accounting Ratio

An easy arithmetical expression of the relationship between two numbers is termed as a ratio. It can be calculated when one figure is divided by another, or it can be defined as an indicated quotient of two mathematical expressions. For example, if $8,000 is divided by $10,000. The ratio can be expressed as 0.8 or 80% or 4 : 5.
It is just a simple fraction, integer, decimal, or percentage showing relationship between two numbers.

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