Learning objective

Understand the reasons for using accounts and how different users utilize accounts and ratio analysis to inform their decisions, such as lending or investing in a business.

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Exam focus

Cambridge IGCSE Business StudiesFinancial information and decisions

Study support

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Quick explanation

This point belongs to Analysis of accounts, especially Analysis of accounts outcomes.
You need to be able to understand the reasons for using accounts and how different users utilize accounts and ratio analysis to inform their decisions, such as lending or investing in a business.
The key ideas to know are Consider and Justify.
Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.

Key concepts

ConsiderJustify

Why it matters

This objective helps connect Analysis of accounts outcomes to exam-style questions, flashcards, and revision notes for Analysis of accounts.

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Flashcards10 linked cards

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Practice Questions7 linked questions

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0 of 5 attempted

Paper 1Short Answer and Data Response1 marks

Data Table

The table below shows the company's revenue and net profit for the last two years.

Year	Revenue	Net Profit
2022	$500,000	$50,000
2023	$600,000	$70,000

a
State the net profit for 2023.
Your answer
Aim for approximately 1 distinct marking point.
[1]

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