• Describe the contents of a company’s financial statements.
  • Describe the difference between income and expenditure.
  • Explain the difference between Assets, liability and equity and to distinguish between long term and short term assetsand liability.
  • To practically demonstrate the double entry system and to apply the formula E= A-L.
  • Describe the difference/ relationship between income/ turnover, cost of sales, gross profit, operating expenses andnet profit. Make use of examples.
  • Calculate the following financial ratios and explain the use of each one:
    • Liquidity ratio
    • Activity ratio
    • Debt ratio
    • Times interest earn ratio
    • Different profit margins
  • Difference between mark-up and gross profit.
  • Understand the difference between fixed and variable cost.
  • Cost – volume – profit analysis.
  • Break-even point.
  • Calculate the cash conversion cycle of a business.
  • Explain the importance of the management of the cash conversion cycle.
  • Explain the importance of managing debtors, stock levels and creditors.