**Course: CA Foundation; Topic: Ratio**

**Learning Objective:**

**How to solve word problem relating to ratios and earnings?**

**Concept:**

**A ratio is a comparison of the sizes of two or more quantities of the same kind by division.****Both the terms of a ratio can be multiplied or divided by the same non-zero number.****Usually a ratio is expressed in lowest terms.****The order of the terms in a ratio is important.****Ratio exists only between quantities of the same kind. Quantities to be compared must be in same units.**