Learners who achieve this unit standard are able to interpret an income and expenditure statement and use information in the statement to make a financial decision.
Learners who achieve this unit standard are able to interpret an income and expenditure statement and use information in the statement to make a financial decision. The qualifying learner is capable of analysing the basic elements of an income and expenditure statement. Analysing the basic elements of a balance sheet. Compiling a personal assets and liabilities statement. Using the evidence in financial statements to make a financial decision.
Course Content
- (Incl. 1.1-1.4 ) Income and Expenditure Statements are explained, and components are understood
- (Incl. 2.1-2.5) Balance Sheet is evaluated, and its components explained
- (Incl. 3.1-3.2) Compiling a personal asset and liability statement
- The financial strengths and weaknesses of an entity are analysed and suggestions are made of ways to improve income and reduce costs.
- The concept of a cost to income ratio is explained and suggestions are made on how to improve the ratio.
- The relationship between turnover, income, revenue, sales/earnings and profit is explained with examples.
- The concept of cash flow is explained in terms of liquidity.
- Non-accredited: Short course only
- Duration: 1h 30m
- Delivery: Classroom/Online/Blended
- Access Period: 12 Months
