CIE IGCSE Topical Past Paper 1

5.3 Income statements

045/11/O/N/2023

ACP manufactures computers. Being ethical is important to ACP. The business employs 3000 workers in its factory. ACP imports 65% of its raw materials. As internal users of accounts, the directors plan to analyse ACP’s financial performance using profitability ratios. The Finance Director thinks making a profit is more important for a business than managing its cash flow.

(d) Explain one benefit and one limitation to ACP of being ethical. [6]
Benefit:
Explanation:

Limitation:
Explanation: