Question 5

Ratio analysis is a very useful tool to understand companys profitability and financial position. However, financial ratios have some flaws. Outline main disadvantages and limitations of using financial ratios. Up to 120 words

(3 marks)

Question 6

Compare the financial performance of Mosaic PLC with the financial performance of the key players in the sector and state whether its performance is typical of the performance of the Apparel Retail industry in the UK over the last two years. You need to use financial information on relevant companies operating within the industry to support your discussion. Up to 300 words.

(6 marks)

Question 7

Explain how the increasing fuel and energy prices and the popularity of online shopping affect companies operating in the Apparel Retail industry in the UK. Support your discussion by evidence from your research. Up to 300 words.

(7 marks)

Question 8

Explain why cash is important for a business and outline how cash is different from profit. Up to 130 words.

(4 marks)

Question 9

State ANY two users of accounting information and explain what financial and non-financial information these users can find useful in Annual Reports of the Public Limited Companies such as Mosaic PLC. Briefly justify your answer. Up to 250 words.

(6 marks)

Question 10

Explain what the Agency Theory refers to and outline the role of directors, shareholders and auditors according to this theory. Up to 180 words.