Unit 5: Financial information
Unit 5: Financial information and decisions
This section contains the course's finance and accounting section and covers sources of finance, the importance of working capital and the use of cash flow forecasts. The main features of a statement of profit or loss are covered as well as statements of financial position. Finally, this topic includes analysis of accounts, profitability and liquidity, and different users of accounts. This section includes two changes for the new Cambridge syllabus, with unit 5.2.2 (working capital) not included but the addition of a new unit 5.3.2 - statements of profit or loss.
The pages in this section can be accessed directly at the following links:
Unit 5.1: The main sources of finance
This lesson focusses on the meaning of the need for business finance, as well as the differences between short and long term financing.Lesson time: 65 minutesLesson objectives:
Unit 5.1: The need for business finance
This lesson focusses on the meaning of the need for business finance, as well as the differences between short and long term financing.Lesson time: 35 minutesLesson objectives:
Unit 5.1: Case study
This page includes a paper one style examination question with a case study and short answer questions based on the text. The question is marked out of 20 and includes a mark scheme. This is an ideal...
Unit 5.2: Cash-flow forecasting and working capital
This lesson addresses the the importance of cash and of cash-flow forecasting; how to amend or complete a simple cash-flow forecast; how to interpret a simple cash-flow forecast and finally working capital.
Unit 5.3: Income statements
What profit is and why it is important? How a profit is made; the importance of profit to private sector businesses and the difference between profit and cash.Lesson time: 110 minutes (this page should...
Unit 5.4: Statement of financial position
The main elements of a statement of financial position, including the main classifications of assets and liabilities. Interpreting a simple statement of financial position. Lesson time: 55 minutes
Unit 5.2 - 5.4 case study
This page includes a paper one style examination question with a case study and short answer questions based on the text. The question is marked out of 30 and includes a mark scheme. This is an ideal...
Unit 5.5: Analysis of accounts
The concept and importance of profitability and liquidity. How to interpret the financial performance of a business by calculating and analysing profitability ratios and liquidity ratios. Lesson time:...
Unit 5.5: How stakeholders use different ratios
How and why different stakeholders use the financial ratios of a business.Lesson time: 75 minutesLesson objectives:In this lesson learners will learn how and why accounts are used by business e.g. how...
Unit 5: Review terms
This page includes the review terms for unit 5, finance. The review terms are available as a PDF file at: Review terms
Unit 5: Multiple choice test
This page contains a multiple-choice question on unit 5, finance. The multiple choice quiz is available as a PDF file at: Questions
Unit 5 multiple choice quiz II
This page contains a multiple-choice question on unit 5, finance.The multiple choice questions are available as a PDF file at: Multiple choice
Selected Pages
Unit 5: Financial information
Unit 5.5: Short answer questions on analysis of financial documents
Q1Fill in the gapsThe ____________________ performance of a business can be assessed by calculating ___________ such as...
Unit 5: Financial information
Unit 5.4: Revision questions financial statements
Q1Fill in the gapsThe _____________________ of _______________________ _________________ lists the value of everything the...
Unit 5: Financial information
Unit 5.3: Revision questions on income statements
Q1Fill in the gapsBusinesses keep financial records in order to keep track of their financial position, such as to see whether...
Unit 5: Financial information
Unit 5.2: cashflow exercises
Q1Fill in the gapsIn order to survive a business needs ____________, for example it will need to buy inventory and pay employees....
Unit 5: Financial information
Unit 5.1: Questions on sources of finance
Q1Fill in the gaps______________ of ______________ are the different methods a business can use to __________ money. A new...
Unit 5: Financial information
Unit 5.1: The need for business finance
This lesson focusses on the meaning of the need for business finance, as well as the differences between short and long...