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Summary Interpretation of financial ratios

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2021/2022 Written for academic year
Institution 10
Course Accounting
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Interpretation and analyse the financial ratios

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Accounting
Grade 10(CAPS)

, Analysis and interpretation of financial
statements
• The final result of a business over a specific accounting period is contained in the
financial statements of the business.
• The purpose in drafting the financial statements is not only to determine the financia
position of the undertaking, but also to
• determine the
• profitability
• liquidity
• soundness
• of the undertaking at a specific date.
• Therefore the proprietor must be able to analyse and interpret the information
contained in the financial statements.
• In analysing financial statements, we would like to arrive at answers to the following
main questions:

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2021/2022
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