Income Statements & Statement of Financial Position - 2 Lessons with activities - Finance

Income Statements - Learning Objectives
Students should be able to:

• understand the importance of financial statements for assessing business performance and helping make business decisions
• identify the main components of the income statement and the statement of financial position

Statement of Financial Position - Learning Objectives
Students should be able to understand:

• Understand the importance of financial statements for assessing business performance and helping make business decisions
• Identify the main components of the income statement and the statement of financial position
• Understand the difference between assets and liabilities and that the statement of financial position is a snapshot in time
• Make judgements on the performance of a business through the interpretation of the information contained in income statements
• Consider current performance, performance against previous years, performance against competitors and performance from the perspective of a range of stakeholders
• Calculate gross profit margin and net profit margin to help assess financial performance.