July 2018

Cambrige Notes: Financial statements

By |2022-09-15T12:31:14+02:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Business Finance and Accounting: Financial statements/ Final Accounts

  • The accounting function exists mainly to record, analyse and present financial information
  • Presentation of financial information involves the preparation of what are known as final accounts
  • They are called final accounts because they are the last accounts to be prepared
  • They are also […]

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July 2017

Business Studies: The uses and limitations/weaknesses of break even analysis

By |2022-09-15T12:33:41+02:00July 11th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Break even analysis: The uses and limitations/weaknesses of break even analysis

  • Break even analysis has it’s strengths and weaknesses

Advantages/Uses/Strengths of Break even analysis

  • Break even analysis is an important investment appraisal option as it allows management to quickly asses the viability of a proposition
  • Margin of safety calculations are […]

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Business Studies: Break even analysis using calculations example

By |2022-09-15T12:33:41+02:00July 8th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Break even analysis using calculations example

  • In this topic we will make Break Even related calculations using formula
  • This approach can be used in conjunction or instead of the graphical method
  • To aid the discussion we will use the example below from a past examination paper:

Shona runs a […]

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Business Studies: Break even analysis the graphical method example

By |2022-09-15T12:33:41+02:00July 8th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Break even analysis the graphical method example

  • As has been pointed out there are two approaches to break even analysis
  • In this post we will look at the graphical method
  • To help make matters clear we will make extensive use of an example below

Shona runs a take-away pizza […]

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Introduction to break even analysis

By |2022-09-15T12:33:42+02:00July 8th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Introduction to break even analysis

  • It is a simple decision making aid used to discover the level of output/activity that is required before profits are made
  • It can also be used to discover the level of activity/output required to achieve a set level of profits
  • Break even analysis is […]

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Fixed costs, variable costs, direct costs and indirect cost

By |2022-09-15T12:33:42+02:00July 8th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Fixed costs, variable costs, direct costs and indirect cost

  • Cost accounting is the accounting function concerned with calculating costs
  • Cost is an amount that has to be paid or given up in order to get something
  • In business costs are expressed in monetary terms
  • In this discussion costs include:
      […]

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Uses, advantages and disadvantages of budgets

By |2022-09-15T12:33:42+02:00July 6th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis: Budgets: Uses, advantages and disadvantages of budgets

  • Facilitate coordination between departments within the organisation
  • Helps to assign and clarify responsibilities e.g. the production department must produce and the marketing department sell produced units
  • Help to translate strategic plans into actionable departmental goals
  • Improves communication
  • Help to control […]

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Business Studies: Budgets an introduction

By |2022-09-15T12:33:43+02:00July 6th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Budgets an introduction

  • As pointed out in another topic one of the principal functions of management is planning
  • It involves creating predetermined courses of action (i.e. plans)
  • A budget is a plan of action for achieving quantified objectives
  • Budgets are plans of action expressed in quantitative(measurable) terms

    • […]

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Business Studies: Gearing ratios

By |2022-09-15T12:33:43+02:00July 5th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Gearing ratios

  • Gearing refers to the extent to which a business’s assets are financed using debt capital versus equity capital
  • Remember the balance sheet equation:
  • Assets = Capital (Equity) + Liabilities (Debt)
  • What this means is that all assets are purchased using either equity or debt finance
  • Equity […]

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Business Studies: Liquidity ratios

By |2022-09-15T12:33:44+02:00July 5th, 2017|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Liquidity ratios

  • Liquidity is a measure of how well a business can meet its short term obligations as and when they fall due
  • It is usually expressed in terms of how well the entity in question can convert its assets into cash
  • Short term obligations include amounts owed […]

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