5 marksFinancial Statement Analysis and Interpretation

CAPE Accounting Unit 1 · 2010 · Paper 2 · Question 3(c)

List FIVE limitations of financial statement ratio analysis.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

3(a)Prepare the Statement of Cash Flows for the year 2008 in accordance with International Accounting Standards 7 (IAS 7).[20 marks]
3(b)Calculate TWO liquidity ratios and THREE profitability ratios for the company and comment on the performance.[10 marks]

More practice: the rest of this paper · more Financial Statement Analysis and Interpretation questions · all CAPE Accounting Unit 1 past papers