finance

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 […]
  

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 […]
  

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 […]
  

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:
  […]

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 […]