1 Explain what you understand by the accounting term ‘capital gearing’, showing clearly the benefits of, and the potential problems associated with, high gearing. ( Scottish Qualifications Authority )...

1

Explain what you understand by the accounting term ‘capital gearing’, showing clearly

the benefits of, and the potential problems associated with, high gearing.

(Scottish Qualifications Authority)

2

What benefits can result through the use of ratios and what limitations should be

imposed on any conclusions drawn from their use?

3

What makes information useful?

4

What is the difference between absorption costing and marginal costing?