Unit 2: Business Resources P7 Business Ratios and Terms (Do an illustration of the financial state of the business using examples from the financial accounts and your ratio analysis, as well as examples from your analysis of budgetary control)

T he performanc e is a general term applied to a part or
to all the c onduc ts of ac tivities of an organization over a period of time often
w ith referenc e to pas t or projec ted c os t effic ienc y, management res pons ibilit y
or ac c ountabilit y T hus , not jus t the pres entation, but the quality of
res ults ac hieved refers to the performanc e. Performanc e is us ed to indic ate
firm’s s uc c es s , c onditions , and c omplianc e.




Company’s financial state analysis involves the use of financial statements. A financial
statement is an organized collection of data according to logical and consistent accounting procedures.
Thus, the term ‘financial statements’ generally refers to two basic statements:
the Balance Sheet and the Income Statement.