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:
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:
