Webclass 74: Balance sheet ratios for risk assessments

Q1. When looking at the Balance Sheet and the Income Statement and doing horizontal or vertical movement analysis, would we usually compare the numbers relating to the opening balance, the net movements or the closing balance?

The closing balance

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The net movements

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Q2. When doing vertical analysis, would we compare the values between different posts on the balance sheet/ income statement or between different fiscal years?

Between different posts on the balance sheet

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Between different fiscal years

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Q3. Do the Balance Sheet accounts always start at 0 at the beginning of the fiscal year or do the P&L accounts always start at 0 at the beginning of the fiscal year?

The P&L accounts

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The Balance Sheet accounts

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Q4. If I want to know which accounts are Balance Sheet accounts and which accounts are P&L accounts, which fields could we look at in the chart of accounts in SAP?

SKA1_GVTYP to know if the account is a P&L account and SKA1_XBILK to know if the account is a Balance Sheet account

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SKA1_KTOKS to know which type of account it is and T077Z to get the account group description

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Q5. Which field in the SAP chart of accounts will help me to know which accounts are for debtors, creditors or fixed assets?

SKB1_MITKZ

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SKB1_HBKID and SKB1_XGKON

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Q6. How could I easily see accounts relating to Balance Sheet adjustments (assuming the SAP system is correctly configured?

Check the T030 table for the accounts that have the transaction key starting with GA

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Check the list of house banks in table T012K

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Q7. Why would we want to organize accounts into hierarchies?

So that we can easily calculate ratios and so that we can easily identify increases or decreases on the Balance Sheet and Income Statement

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So that we can calculate the balance per account

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Q8. Which statement is correct?

An increase in assets is seen on the debit side and an increase in liabilities/ equity on the credit side

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An increase in assets is seen on the credit side and an increase in liabilities or equity on the debit side

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Q9. Why would we calculate the variance based on the closing balance and not based on the total movements?

Because Balance Sheet accounts "carry forward" their balance to the next fiscal year

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Because P&L accounts are reset to 0 at the beginning of the fiscal year

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Q10. Why can we not add up the balance per account and month?

Because a balance is a "cumulation", it is not the value per month

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Because the balance could be negative or positive

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Q11. What could be the risk indicated by an unusually high increase in the sales/ cash ratio?

Inflated revenue

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Deflated revenue

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Q12. What could be the risk indicated by an unusually high decrease in the inventory/ expenditure ratio?

Inventory leakage/ theft

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Over-stocking in the warehouse

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Q13. What could be the risk indicated by an unusually high increase in the receivables/ revenue ratio?

Fictitious billing documents

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Decrease in pricing

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Webclass 74: Balance sheet ratios for risk assessments

Webclass 74: Balance sheet ratios for risk assessments

admin June 9, 2026

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