Thursday, 22 March 2012

Balance sheets

Dear year 11

Learning objective
You should be able to prepare a balance sheet and explain how a business can use this information.

Key terms

Assets - these are the posessions of a business
Liabiliites - these are what the busienss owes
Capital - this is what the owner invests in the busienss eg Owners fund

In a nutshell the balance sheet consists of:

  • FIXED and CURRENT ASSETS
  • LONG TERM AND CURRENT LIABILITIES
  • OWNERS FUND
Activity one
Learning the key terms

To do this you need to first understand the terminology and then get use to the layout.  I've created you a pack for the next two lessons to allow you to keep this simple.


Activity two
Completing the work pack

Activity three

Worksheet - Components of a financial statement - click here


Once this is secure we can move on the RATIO ANALYSIS and our FINANCE knowledge should be secure.  If your still not sure on either Profit and Loss or balance sheets perhaps this could be re-visited at your weekly mentoring / coaching slot with your business studies mentor.

Homework
Revise key terms for Profit and loss and balance sheets - for acess to the KEY TERM TEST click here.  The test will be next lesson!

Good luck and enjoy

Mr T

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