Why is analysis of financial statements carried out? A So that the analyst can determine...
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Why is analysis of financial statements carried out? A So that the analyst can determine a company's accounting policies B So that the significance of financial statements can be better understood through comparisons with historical performance and with other companies C To get back to the 'real' underlying figures, without the numbers being skewed by the requirements of International Financial Reporting Standards D To produce a report that can replace the financial statements, so that the financial statements no longer need to be looked at (2 marks) The following information is relevant for Questions 15.6 o 15.8 Quality Co are drafting their financial statements. An extract from their draft statement of financial position at 31 March 208 is set out below. What is the gearing of the company? You should calculate gearing using capital employed as the denominator. ABCD13%16%20%24% (2 mar What is the quick ratio of the company? What is the current ratio of the company
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