Business A Level, Edexcel, Theme 3.5 Latest
Exam And All Correct Answers.
Statement of Comprehensive Income - Answer a financial document showing a company's income and
expenditure over a particular time period, usually one year
Statement of Financial Position - Answer a summary at a particular point in time of the value of a firm's
assets, liabilities and capital
Shareholder Interest in Balance Sheet and Income Statement - Answer potential shareholders, sell their
shares, assess solvency, if investment is growing, dividends
Manager Interest in Balance Sheet and Income Statement - Answer monitor working capital so don't
overspend, job security, confidence and motivation
Supplier Interest in Balance Sheet and Income Statement - Answer offering trade credit
Employee Interest in Balance Sheet and Income Statement - Answer job security and motivation
Ratio Analysis - Answer the calculation and interpretation of financial ratios to asses the performance
of a business
Gearing - Answer non-current liabilities/capital employed x 100 - measures what % of a business'
assets were bought using borrowed money
Gearing Ration over 50% is: - Answer Highly geared = high interest expenses
Evaluation of Gearing - Answer debt is not a problem if it can be paid, depends on the industry the
business is it
Exam And All Correct Answers.
Statement of Comprehensive Income - Answer a financial document showing a company's income and
expenditure over a particular time period, usually one year
Statement of Financial Position - Answer a summary at a particular point in time of the value of a firm's
assets, liabilities and capital
Shareholder Interest in Balance Sheet and Income Statement - Answer potential shareholders, sell their
shares, assess solvency, if investment is growing, dividends
Manager Interest in Balance Sheet and Income Statement - Answer monitor working capital so don't
overspend, job security, confidence and motivation
Supplier Interest in Balance Sheet and Income Statement - Answer offering trade credit
Employee Interest in Balance Sheet and Income Statement - Answer job security and motivation
Ratio Analysis - Answer the calculation and interpretation of financial ratios to asses the performance
of a business
Gearing - Answer non-current liabilities/capital employed x 100 - measures what % of a business'
assets were bought using borrowed money
Gearing Ration over 50% is: - Answer Highly geared = high interest expenses
Evaluation of Gearing - Answer debt is not a problem if it can be paid, depends on the industry the
business is it
