Accounting ratios can be used for the interpretation and analysis of financial statements

TASK 1 – - Following the specified rules below: • Name your business and clearly state what type of business it is • Create a list of relevant transactions. • Record the transactions with double entry using T-accounts. • Balance the T-accounts and bring down an opening balance as at 1 December 2016. • Prepare a trial balance as at 30 November 2016. TASK 2 – 25 marks maximum - Following the specified rules below: • From the trial balance prepare an Income Statement for the period ended 30th November 2016 • Prepare a Statement of Financial Position as at 30th November 2016 TASK 3 – 30 marks maximum - Accounting ratios. Accounting ratios can be used for the interpretation and analysis of financial statements.” i. Provide comprehensive description of the four main groups of accounting ratios ii. With the use of data from Task 2 (Financial Statements ) calculate the following ratios for your business: