Unit 2: Managing Financial Resources and Decisions
Finance as a resource
Analyse the implications of finance as a resource within a business
Finance costs: tangible costs eg interest, dividends; opportunity costs eg loss of alternative
projects when using retained earnings; tax effects
Financial planning: the need to identify shortages and surpluses eg cash budgeting;
implications of failure to finance adequately, overtrading
Decision making: information needs of different decision makers
Accounting for finance: how different types of finance and their costs appear in the financial
statements of a business, the interaction of assets and liabilities on the balance sheet
Suggested Reading
Accounting for Non-accounting Students
