Interpreting Financial Accounts

Abstract

Company accounts are always audited so that they can be filed at Companies House and submitted to the Inland Revenue. Although these documents show the assets, liabilities, revenue and expenditure, together with the profit or loss which a business has made each year, the owners, managers and other interested parties usually like to know more about their company’s financial performance. In order to gain this deeper understanding they need to learn how to carry out ratio analysis.