ZIMSEC A-Level Accounting
2.2Interpretation and analysis of financial statements
Interpretation and analysis of financial statements in ZIMSEC A-Level Accounting: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic135 practice questions6 lessons
Learning objectives
What the syllabus expects you to be able to do.
- 2.2.1List, explain and calculate profitability ratios (gross and net profit margin, return on assets, return on equity, return on capital employed, operating expenses to sales).
- 2.2.2Calculate financial ratios (current, quick, receivables collection and payables payment periods, rate of inventory turnover) and resource utilisation ratios (total assets, non-current assets, current assets and capital employed turnover).
- 2.2.3Calculate investment ratios (earnings per share, price earnings, debt to equity, dividend yield, cover and per share, gearing, earnings yield).
- 2.2.4Interpret the ratios and analyse the financial statements of businesses or projects.
Lessons
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Efficiency ratios and working capital management
50 min
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Interpreting ratios, linking them and their limits
55 min
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Investment ratios for shareholders
50 min
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Liquidity ratios and the ability to pay
50 min
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Profitability ratios and what they show
55 min
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Solvency, gearing and the working capital cycle
55 min
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Sample question
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