Business 0450 · IGCSE · Analysis of accounts

Analysis of accounts — practice question

(a)[8]

Identify and explain one reason why TT requires short-term finance and one reason why TT requires long-term finance.

(b)[12]

Use Appendix 3 together with the other case-study information to assess TT’s financial performance. Do you think the directors should be pleased with the company’s performance? Support your view with suitable ratios.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Short-term finance to meet working capital / inventories / wages

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