Contents
Unit 3: Personal and Business Finance
Module objectives
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Objectives
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Statement of comprehensive income
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Statement of comprehensive income
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Depreciation
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Exercise: Depreciation
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Pause for thought: Statement of comprehensive income
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Statement of financial position
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Statement of financial position
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Pause for thought: Statements of financial position
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Using ratios
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Performance measurement
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Case study: Statements of comprehensive income and financial position
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Limitations of ratios
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Limitations of ratios
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Module 6: Complete statements of comprehensive income and financial position and evaluate business performance

Limitations of ratios

 

While ratios can be useful, they also have limitations and therefore it is important to remember that they do not show the whole picture.

Also, when comparing businesses or different years, it is important to remember that businesses are never the same and that every year in business is unique.

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