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Year 12 Business Studies

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Topic 3 | Finance

Sub topic 3: Processes of financial management

Lesson 1 | Processes of financial management

  • planning and implementing – financial needs, budgets, record systems, financial risks, financial controls
    – debt and equity financing – advantages and disadvantages of each
    – matching the terms and source of finance to business purpose

  • monitoring and controlling – cash flow statement, income statement, balance sheet

Lesson 2 | Financial ratios

  • financial ratios
    – liquidity – current ratio (current assets ÷ current liabilities)
    – gearing – debt to equity ratio (total liabilities ÷ total equity)
    – profitability – gross profit ratio (gross profit ÷ sales); net profit ratio (net profit ÷ sales); return on equity ratio (net profit ÷ total equity)
    – efficiency – expense ratio (total expenses ÷ sales), accounts receivable turnover ratio (sales ÷ accounts receivable)
    – comparative ratio analysis – over different time periods, against standards, with similar businesses

Lesson 3 | Limitations of financial reports

  • limitations of financial reports – normalised earnings, capitalising expenses, valuing assets, timing issues, debt repayments, notes to the financial statements

  • ethical issues related to financial reports

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  • HSCStudy Lab Lessons

    38 Lessons

    The course content covers the NSW Year 12 Business Studies Syllabus comprehensively.

  • HSCStudy Lab Quizzes

    60 Practice questions

    60 lesson quizzes that include a variety of question types. This course also includes 3 topic level quizzes, as well as a comprehensive course level practise test.

  • HSCStudy Lab videos

    38 Hours of video

    Video lessons by expert teachers that comprehensively cover every syllabus dot point in the Year 12 Business Studies syllabus.

  • HSCStudy Lab interactives

    24 Interactive activities

    Games and simulators that allow you to practise running your own business, preparing financial statements, and conducting a SWOT analysis.

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