i) Two uses of accounting ratios other than performance assessment:

1. Assessing liquidity:
   • Ratios such as the current ratio and quick ratio help in evaluating the liquidity position of an entity, showing its ability to meet short-term obligations.
2. Comparative analysis:
   • Ratios provide a means for comparing the financial performance of different entities, especially those in the same industry, making it easier to assess their relative financial strength.

ii) Three limitations of the use of accounting ratios in appraising financial performance:

1. Inconsistent definitions:
   • Different companies might calculate ratios differently or use different accounting policies, leading to a lack of comparability between companies.
2. Historical data:
   • Ratios are based on past financial information, which may not reflect the current or future financial condition of a company, especially in times of rapid market changes.
3. Effect of inflation:
   • Ratios do not account for the effects of inflation, which can distort financial data, especially in industries with significant capital investment or high levels of inventory.