The document provides explanations of key financial terms used in balance sheets and profit and loss statements. It defines items that would appear on a basic balance sheet such as capital and reserves, liabilities, assets, and provides the classifications of current assets, fixed assets, intangible assets, and other non-current assets. It also explains common financial ratios used to analyze business performance and financial health such as current ratio, debt-equity ratio, return on capital employed, and inventory turnover ratio.

1. Financial Appraisal

5. Basic Form of Balance Sheet: of 19

18. Ratio Analysis

21. Classification of Ratio of 19 Liquidity Efficiency Turnover Leverage Valuation Current Ratio Quick Ratio GP margin NP margin ROI RONW Fixed Asset Turnover Ratio, Inventory Turnover Ratio, Debtor’s Turnover Ratio. Creditor’s Turnover Ratio Debt – Equity Debt Ratio, Indebtedness Ratio, Interest Coverage Ratio, DSCR EPS D/P Ratio MV to BV Ratio