Business Studies - 0450 CIE

Why And How Accounts Are Used:

Gbogbo ọrọ náà

A business's accounts are not just for the tax office. Banks, investors, managers, suppliers, workers and the government all pore over them, each asking a different question: Can they repay us? Is it worth investing? Is my job safe? Ratio analysis turns the raw figures into answers.

In this lesson you will learn the different users of accounts and what each needs to know, and how ratio results, profitability and liquidity, help them decide whether to lend to, invest in or trade with a business.

Ebumnobi

  1. Needs of different users of accounts and ratio analysis
  2. How users of accounts and ratio results might use information to help make decisions, e.g. whether to lend to or invest in the business

Nkuzi Olu

Gee ntị na nkuzi a na ngwa

Maapụ uche

E seela isiokwu a ka ị hụ otu echiche si ejikọta.

Mepee maapụ uche na ngwa

Kaadị ncheta

Omume ncheta ngwa ngwa n'ihe a na-anwale n'isiokwu a.

Mee omume kaadị ndị a na ngwa

Akwụkwọ Ọmụmụ

Accounts let outsiders judge a business they cannot see inside. A bank decides whether to lend, an investor whether to buy shares, a supplier whether to give credit, all from the accounts and the ratios drawn from them. Examiners ask who uses accounts, why, and how ratios inform their decisions.

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Nnyocha Ọmụmụ

Ekele diri gi maka imecha ihe karịrị na Why And How Accounts Are Used:. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  1. Which user of accounts most wants to know if a loan can be repaid? A. a customer B. a bank C. a competitor's customer D. a tourist Answer: B
  2. Revenue is $500,000 and gross profit is $200,000. The gross profit margin is: A. 25% B. 40% C. 60% D. 250% Answer: B
  3. ROCE is calculated as: A. net profit / revenue x 100 B. net profit / capital employed x 100 C. current assets / current liabilities D. gross profit / inventories Answer: B
  4. The current ratio measures a firm's: A. profitability B. liquidity C. market share D. number of staff Answer: B
  5. The acid test ratio differs from the current ratio because it: A. adds inventories B. removes inventories from current assets C. uses revenue D. ignores liabilities Answer: B

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