Published Accounts Flashcards
1
Q
Benefits of Published Accounts
A
- use the information to compare its performance against set targets. The information may also assist with forward planning
- may use the accounts to compare performance with that of previous years or with that of its competitors.
- Help with getting loans
- Attract new shareholders
2
Q
Limitations of Published Accounts
A
- Focuses on quantitative issues, ignoring qualitative.
- May be difficult to compare performance with rivals that use different accounting policies / or windowdress
- Not available usually till after the accounting year, therefore not as relevant.
3
Q
Purpose of an income statement [4]
A
- Can help in future decision making
- Can compare with previous years
- Shows the income and costs the business has
