← Interpret accounting information
What the grades require
Four moves, in a fixed order — every part of every paper is graded on how many of the four you complete.📖 The four-step pattern
5 termsCover the right column and check you can say what each one means.
- Meaning
- Convert the given percentage or ratio into plain words, with a dollar comparison where possible — the Achieved-level move.
- Reason
- One cause for the trend, drawn from the resource and specific to THIS entity — never a generic "costs went up".
- Link
- How this measure connects to another measure the paper has given you — the Merit-level move.
- Consequence
- What happens to the business NEXT as a result — followed one step further than feels necessary, the Excellence-level move.
- Recommendation
- A clear YES/NO decision, with at least three reasons (one an analysis measure) and both dollar and ratio figures — always the final part.
Before writing anything
- Identify which of the three groups (profitability, liquidity, stability) the given measure belongs to — that tells you which consequence to reach for.
- Check whether an industry-average figure has also been given — if so, the answer needs BOTH a trend comparison and an industry comparison.
The one habit that carries every mark in this standard
- Ground every claim in the SPECIFIC figures and narrative given in the resource — a statement that could apply to any business earns nothing here.
Practice for this standard covers the whole topic — flashcards and quiz.