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Syllabus H1-3. Ratios

Syllabus H1-3

Ratios 1 / 1

a) Describe how the interpretation and analysis of financial statements is used in a business environment. 
b) Explain the purpose of interpretation of ratios

a) Calculate key accounting ratios
i) Profitability
ii) Liquidity
iii) Efficiency
iv) Position
b) Explain the interrelationships between ratios

a) Calculate and interpret the relationship between the elements of the financial statements with regard to profitability, liquidity, efficient use of resources and financial position.
b) Draw valid conclusions from the information contained within the financial statements and present these to the appropriate user of the financial statements.