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QUESTION OND a) The information in the statement of comprehensive income if used with information in the other financial statements help external users answer several
QUESTION OND a) The information in the statement of comprehensive income if used with information in the other financial statements help external users answer several questions. State and briefly explain the questions that can be answered by analysing the statement of comprehensive income. (8 marks) Analysis of earnings quality is often affected by an analysis of receivables and thei collectability. The analyst must be alert to changes in the allowance computed relative t sales, receivables, or industry and market conditions. Two key questions arise for the analyst: 1. Collection Risk 2. Authenticity of receivables b) Explain the key issues or questions an analyst should consider when analysing: i) Collection Risk i) Authenticity of receivables. (8 marks)
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