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

3.4 Budgeting - notes (HL only)

Introduction

In the previous section we looked at sources of finance and their suitability, used different methods of investment appraisal, defined working capital and prepared cash flow forecasts. We now move on to look at budgets and variances.

By the end of this section you should be able to:

• Explain the importance of budgeting for organisations
• Calculate and interpret variances
• Analyse the role of budgets and variances in strategic planning