BUSF_A01.qxd

Chapter 3 • Financial statements and their interpretation It should be said that the approach to accounting that is taken in the ...

The financial statements broadly in line with that which most UK businesses use for the annual published financial statements. I ...

Chapter 3 • Financial statements and their interpretation Jackson plc Balance sheet as at 31 December 2008 Cost Depreciation £ m ...

The financial statements periods in some reasonable manner. In practice in the UK this is typically accom- plished by sharing th ...

Chapter 3 • Financial statements and their interpretation This statement shows that the business generated a net cash inflow of ...

Definitions and conventions of accounting Money measurement convention Accounting defines things in terms of money, and can do n ...

Chapter 3 •Financial statements and their interpretation l the amount (value) of the revenue is capable of being measured with s ...

Problems with using accounting information will be capable of being used by the business for the whole of its useful life, rathe ...

Chapter 3 • Financial statements and their interpretation needs that decision makers currently try to satisfy. Rather, it develo ...

Creative accounting One case of overstating revenue is said to have been carried out by the Xerox Corporation, a large US busine ...

Chapter 3 • Financial statements and their interpretation an additional $628 million of liabilities at the end of 2000. The busi ...

3.6 Ratio analysis therefore, become too complacent. Things may change again when we next experience a period of strong growth. ...

Chapter 3 • Financial statements and their interpretation This ratio looks at the return on the longer-term providers of funds ( ...

Ratio analysis Operating profit margin ratio ×100% The ratio for Jackson plc for 2008 is: × 100 =16.1% This ratio shows what is ...

Chapter 3 • Financial statements and their interpretation Looking at these ratios for Jackson plc for 2008 (see above), we have: ...

Ratio analysis credit policy will lead to them taking as short a time as possible to pay, without dam- aging good customer relat ...

Chapter 3 • Financial statements and their interpretation manufacturers have very much higher levels. The difference is almost c ...

Ratio analysis The ratio for Jackson plc for 2008 is: =13.6 days The numerator (top of the fraction) is cash. The denominator (b ...

Chapter 3 • Financial statements and their interpretation Interest cover ratio The ratio for Jackson plc for 2008 is: =4.5 times ...

Ratio analysis The price/earnings (P/E) ratio can be seen as the number of years that it would take, at the current share price ...