Business Accounting Spec Essay
QCF Level 3:
Guided learning hours: 60
Aim and purpose
The aim of this unit is to enable learners to understand the purpose of accounting, and the associated processes and its role in the managing of a business. Learners will develop the skills and knowledge needed to understand financial information.
Understanding how a business operates and what makes it successful, requires knowledge of the accounting process. Accounting involves recording business transactions and, this in turn, leads to the generation of financial information which can be used as the basis of good financial control and planning. …show more content…
Learners will discover how to carry out ratio analysis as well as the meaning and implication of the figures.
On completion of this unit a learner should:
Understand the purpose of accounting and the categorisation of business income and expenditure
Be able to prepare a cash flow forecast
Be able to prepare profit and loss accounts and balance sheets
Be able to review business performance using simple ratio analysis.
Edexcel BTEC Level 3 Nationals specification in Business
– Issue 2 – June 2010 © Edexcel Limited 2010
1 Understand the purpose of accounting and the categorisation of business income and expenditure
Purpose: record transactions; monitor activity; control; management of the business (planning, monitoring, controlling); measurement of financial performance (gross profit, net profit, value owed to and by the business)
Capital income: sole traders; partners; shares; loans; mortgages
Revenue income: sales (cash and credit