Analysis of accounts Lesson Plan. 'MS word doc.' IGCSE Business Studies

Lesson Plan
Topic: Analysis of accounts - ‘MS word doc.’
Lesson Objective: are shared with the students for awareness and expectation of lesson outcome.
At the end of the lesson, the students will be able to;
Explain the concept and importance of profitability. Liquidity: •• The concept and importance of liquidity. How to interpret the financial performance of a business by calculating and analyzing profitability ratios and liquidity ratios:
•• Gross profit margin •• Profit margin •• Return on Capital Employed •• Current ratio •• Acid test ratio. Why and how accounts are used: •• Needs of different users of accounts and ratio analysis
•• How users of accounts and ratio results might use information to help make decisions, e.g.
whether or not to lend or invest in the business