Business 7115 · O Level · Analysis of accounts

Analysis of accounts — practice question

(a)[8]

Identify two financial statements that the directors should review before CC expands. Explain why they will want to examine each statement.

(b)[12]

Examine the following three factors affecting CC when it imports all of its ingredients. Which factor is the most important 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 - to judge profitability / whether retained profit is available / whether a loan is needed / ability to repay the loan

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