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Unit 1: Business Organisations & Environments

 

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 Topic Three: 

 Finance and accounts 

3.1 Sources of Finance

  • Capital and revenue expenditure

  • Internal sources of finance

  • External sources of finance

  • Short, medium and long-term finance

  • Choosing a source of finance

3.2 Costs and Revenues

  • Fixed, variable, semi-variable, direct and indirect costs

  • Revenue streams

3.3 Break-even Analysis

  • Contribution

  • Break-even charts

  • Target profits and prices

  • Effects of change

  • Benefits and limitations

3.4 Final Accounts (some HL)

  • Principles and ethics of accounts

  • Profit and loss Statement and Balance Sheet

  • Intangible assets

  • Depreciation (HL)

3.5 - 3.6 Ratio Analysis (some HL)

  • Profitability ratios

  • Efficiency ratios (some HL)

  • Liquidity ratios

3.7 Cash Flow

  • Profit vs cash flow

  • Working capital cycle

  • Cash flow forecasts

  • Investment, profit and cash flow

  • Cash flow problems

3.8 Investment Appraisal (some HL)

  • Payback period

  • Average Rate of Return (ARR)

  • Net Present Value (NPV)

3.9 Budgeting (HL)

  • Importance of budgets

  • Cost and profit centres

  • Variance analysis and strategic planning

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