ACC11 TERM 2 WEEK 1 – 3 Financial accounting of partnerships – analysis and interpretation

TOPIC – Financial accounting of partnerships – analysis and interpretation

Analysis and interpretation of financial statements and notes
Revision of the following:
• gross profit on sales
• gross profit on cost of sales
• net profit on sales
• operating expenses on sales
• operating profit on sales
• solvency ratio
• current ratio
• acid test ratio
Introduction to and covering of the following:
• stock turnover rate
• stock holding period
• average debtors’ collection period
• average creditors’ payment period
• debt-equity ratio (gearing)
• partners’ earnings
• return on partners’ equity