Candidates are required to apply their understanding to a variety of simple business situations and should be able to make simple decisions based upon the analysis and evaluation of information provided.
Topic | Content |
Business finance: needs and sources | The need for business finance; The main sources of finance, |
Cash-flow forecasting and working capital | The importance of cash and of cash-flow forecasting; Working capital. |
Income statements | What profit is and why it is important; Income statements. |
Statement of financial position | The main elements of a statement of financial position; Interpret a simple statement of financial position and make deductions from it. |
Analysis of accounts | Profitability; Liquidity; How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios; Why and how accounts are used. |