9 terms in 3.17
Interpretation, analysis and communication of accounting information
Accountants use ratios and other measures to judge how well a business is performing. But ratios have real weaknesses, a
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Investors use five key ratios to judge whether a company is worth buying into. These ratios measure returns, profitabili
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Businesses judge their performance in two ways. They compare their own results year on year, and they compare themselves
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Profit and cash are not the same thing. A business can earn high profits but still run out of cash — and some transactio
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Different groups of people have different reasons for wanting accounting information. A business must communicate that i
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Internal stakeholders work inside a business and use its accounting information for their own purposes. The three main g
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
External stakeholders are groups outside a business who have an interest in how it performs. Each group wants different
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Published accounts are financial reports that companies must make available to the public. Different groups — such as in
Interpretation, analysis and communication of accounting information
Interpretation, analysis and communication of accounting information
Businesses can record financial transactions by hand or using accounting software. Each method has different costs, accu
Interpretation, analysis and communication of accounting information