3.8 Analysis and evaluation of financial information
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Additional information |
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Calculation and interpretation of financial measures and ratios. |
Financial ratios and measures are:
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Appraising business performance by using financial statements and ratios. |
Appraisals could focus on:
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The difference between cash and profits and the effect of transactions on profitability and liquidity. |
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The limitations of financial statements and ratio analysis when assessing business performance. |
Limitations will include those relating to both financial and non-financial factors. |