Introduction to Concepts (Grade 10 NSC Matric Accounting): Flashcards
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Practise the cards
10 cards from this deck
Financial statement analysis
Financial statement analysis
Method to assess business's current & past financial position
What a ratio shows
What a ratio shows
Relationship between two financial values
Profitability measures
Profitability measures
How successful business is vs profit to sales/investment
Return determines
Return determines
If investors get fair return on money invested
Solvency definition
Solvency definition
Ability to meet financial obligations & pay long-term debts
Liquidity definition
Liquidity definition
How quickly business converts assets to cash for short-term
Risk in financial analysis
Risk in financial analysis
How much business depends on borrowed money
Liquidity vs solvency
Liquidity vs solvency
Liquidity=short-term debts; Solvency=long-term debts
5 key areas of financial analysis
5 key areas of financial analysis
Profitability, Return, Solvency, Liquidity, Risk
5 steps in ratio analysis
5 steps in ratio analysis
Ratio, Info, Calculation, Comparison, Interpretation