LU1 Flashcards
1
Q
balance sheet analyis
A
horizontal
vetical
base year
ratio
2
Q
limitations of balance sheet
A
- does not reflect all values( buildings,equipment)
- does not reflect all values of operations
- only for a moment
- judgemnt based
3
Q
vertical analysis
A
income statement: % of revenue
balance sheet: % of total asstes
4
Q
ratios for,managers creditors, investors
A
- performance
- riskiness of loans
- evaluate performance
5
Q
limitations of ratios
A
only indicators
does not resolve or show exact problem
most useful when compared with standard( or other hotels)
no single ratio tells the entire story
computed from figures in financial statements
