Business 0450 · IGCSE · Income statements

Income statements — practice question

(a)[8]

Identify two financial statements the directors must examine before CC expands. Explain why they would want to review each of these statements.

(b)[12]

Consider the three factors below that affect CC when importing all of its ingredients. Which is the most important factor when deciding whether to import ingredients? Justify your answer. Exchange rate: Import tariffs: Delivery time: Conclusion:

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Income statement / profit and loss account - used to judge profitability / whether retained profit is available / whether a loan is needed / whether the loan can be repaid

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