Unit 3: Finance and accounts
Formula sheet and format of accounts
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Unit 3.2 Costs and revenues
Cost refers to the cost of production (which is paid by the producer). Price refers to the amount the product is sold (which is paid by the customer).
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Unit 3.4 Final accounts
All businesses need to keep records of their financial statements. All companies must provide a set of final accounts to its various stakeholders.
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Unit 3.5 Profitability and ratio analysis
Ratio analysis is quantitative management tool for analysing and judging the financial performance of a business.
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Unit 3.6 Efficiency ratio analysis (HL)
Efficiency ratios show how well a firm's resources have been used, such as the amount of time taken by the firm to sell its stock (inventory) or the average number of days taken to collect money from its debtors.
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Unit 3.7 Cash flow
A cashflow forecast is a financial document that shows the expected movement of cash into and out of a business, per time per period.
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Unit 3.8 Investment appraisal
Investment appraisal refers to the quantitative techniques used to calculate the financial costs and benefits of an investment decision.
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Unit 3.9 Budgets (HL)
A budget is a financial plan of expected revenue and expenditure for an organisation, or a department within an organisation.
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