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Analysis of financial performance and position

Introduction to analysis

1.1 Introduction to analysis of performance and position

Chapters 3 – 18 look at preparing the financial statements.

 Why do entities prepare financial statements in the first place?

 What is the purpose of the financial statements?

To allow the USERS of the financial statements to analyse the performance

and position of an entity.

Analysis makes up 25% of the F2 exam. You will get 15
questions on this topic area.

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