3 Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
   1. Budgeting
   2. Types and purposes of budgets
   3. Variance analysis
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

Budgeting AO2

AO2 You need to be able to: Demonstrate application and analysis of knowledge and understanding Command Terms: These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate: Analyse, Apply, Comment, Demonstrate, Distinguish, Explain, Interpret, Suggest

A budget is a forward financial plan. It provides a prediction of expected flows of money in and out of the firm in the immediate future. A budget is a yardstick by which a manager's success or failure can be measures and potentially rewarded. Normally, a budget will be prepared in advance of a period of time, usually a year but it could be on a monthly or quarterly basis.

Budgets are drawn up for a number of reasons within a firm. Often the process of producing a budget will take a significant amount of time. Producing budgets on a regular basis for a large part of the activities of the business will help in many ways.