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BSB50420: Diploma of Leadership and Management Answer the following questions: 1.1. Explain the process to establish and review profits and losses from financial statements. 1.2. Why it is important to review profits and losses from financial statements? Answer in 150-200 words – It helps the organisation determine where they are at in their plans, what is working, what needs to be changed etc 1.3. Explain the following processes/methods of analysing financial statements in 150-200 words. Vertical Analysis – a process in which each line item is identified as a percentage of a base figure in the statement. Horizontal Analysis – It examines and compares shifts in a company’s financial figures over various reporting periods Q.2. Answer the following questions regarding principles of accounting and budgeting:
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