Unit 2: Managing Financial Resources and Decisions
Financial performance
Analyse and evaluate the financial performance of a business
Terminology: introduction to debit, credit, books of prime entry, accounts and ledgers, trial
balance, final accounts
Financial statements: basic form, structure and purpose of main financial statements ie
balance sheet, profit and loss account, cashflow statement, notes, preparation not required;
distinctions between different types of business ie limited company, partnership, sole trader
Interpretation: use of key accounting ratios for profitability, liquidity, efficiency, and
investment, comparison both external ie other companies, industry standards and internal ie
previous periods, budgets
Suggested Reading
Accounting for Non-accounting Students
