Business finance and accounting
Unit summary
The purpose of this unit is to introduce learners to the crucial importance of business finance and accounting. Learners will investigate the role that business finance and accounting plays in the survival and success of all types of enterprises and discover the basic financial techniques used in business.
Unit details
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15 Business, Administration and Law
| Learning Outcome |
Assessment Criteria |
| 1. Understand accounting in a business. |
a Explain the purpose of accounting and the different roles within business finance and accounting.
b Explain how financial software can support business finance and accounting functions.
c Identify the stakeholders in a business and describe their interests. |
| 2. Be able to use the accounting records to provide financial information and calculate corporation taxation liabilities. |
a Calculate a business’s financial position, break-even, profit and tax liability.
b Present financial information in an appropriate format. |
| 3. Understand how a business can finance its activities. |
a Explain the sources of finance available to a business and the ways in which a business raises capital.
b Analyse sources of finance to select the most appropriate to meet business requirements. |
| 4. Be able to use marginal costing and break-even analysis as an aid to short-term financial decision making. |
a Use break-even analysis to make decisions.
b Apply marginal costing to make decisions. |
| 5. Understand the role of budgets and budgetary control in the management of an organisation. |
a Interpret simple budgets.
b Explain how budgets can be used to plan and control a business. |
| 6. Be able to assess the financial performance of a business using financial ratios. |
a Use financial statements to make business decisions.
b Use financial ratios to assess the financial performance of a business. |