Week 11 Tutorial Questions Solutions

Week 11 Tutorial Questions Solutions - ACCT1501 2011S1 Week...

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ACCT1501 2011S1 1 Week 11 Tutorial Questions Solutions Tutorial Questions: DQ14.1, 14.3; Problems 14.6, 14.16 Discussion Questions 1 The purpose of financial statement analysis is to use the financial statements to evaluate an enterprise’s financial performance and financial position. 3 Before calculating ratios the following information about a company should be gathered: i The nature of the enterprise, its circumstances are plans. Some of this information may be provided in the descriptive sections of the company’s annual report as well as the footnotes to the financial statements. ii The nature of the decision or evaluation to which the analysis will contribute. iii Comparative information to provide a frame of reference for the analysis. This could include industry data, reports by other analysts, results for similar companies or the same company in other years. iv Other possible sources are: • prospectus relating to new issue of shares or debentures.
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This note was uploaded on 03/19/2012 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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Week 11 Tutorial Questions Solutions - ACCT1501 2011S1 Week...

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