Unidentified Industries: Australia 2014
Posted: 4 Nov 2015 Last revised: 11 Nov 2015
Date Written: September 1, 2015
This exercise helps students understand how different business characteristics are reflected in financial statements (balance sheets, income statements, and financial ratios). In this particular exercise, students are given balance sheet data in percentage form (common-size balance sheets) and other selected financial ratios for a set of 12 unidentified firms from 12 different industries (all 12 companies are listed on the Australian Securities Exchange, ASX). Students must use the balance sheet data and the financial ratios along with their basic knowledge of the operating characteristics of these various industries to match each firm to the correct industry. The goals are to learn about the major components of balance sheets, and how to calculate and interpret commonly-used financial ratios.
Keywords: Accounting, Financial statement analysis, Financial Ratios, Australia, Financial reporting
JEL Classification: M41, G30
Suggested Citation: Suggested Citation