Interpretation Question Approach Flashcards
1
Q
Components of response?
A
Introduction
Analysis
Conclusion
2
Q
What should be included in an introduction?
A
A brief two sentences on the ratios
3
Q
What should be included in a conclusion?
A
Address concern and make suggestions based on information
Limtatios of analysis
4
Q
How to split an analysis?
A
By profitability, liqudity and solvency
Financial position and performance
5
Q
Key points in an analysis?
A
Reasons/causes of ratio movements
Movements in position and performance that don’t match prior year results
Linkage between reported figures
Key drivers and impact of strategic decisions
One-off changes
Effect of assets
