January 2023

Business Studies: Break even analysis using calculations example

By |2022-09-15T12:33:41+02:00January 24th, 2023|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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Importance of cash flow to the business

By |2022-09-15T12:33:46+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Importance of cash flow to the business

  • It is important for a business to manage its cash flow carefully
  • As pointed out in the introduction there is a difference between cash flow and profitability
  • It is quite possible for a business to be profitable and still have cash flow […]
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Business Studies: The uses and limitations/weaknesses of break even analysis

By |2022-09-15T12:33:41+02:00January 24th, 2023|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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The role and importance of the accounting function

By |2022-09-15T12:33:46+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: The role and importance of the accounting function

  • Accounting is the organisational function that is primarily concerned with:
    1. devising methods for recording transactions, and actually recording those transactions
    2. keeping financial records,
    3. performing internal audits,
    4. reporting and analyzing financial information to the management,
    5. and advising on taxation matters
  • It is […]
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Cambrige Notes: Financial statements

By |2022-09-15T12:31:14+02:00January 24th, 2023|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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Business Studies:The profit and loss account

By |2022-09-15T12:33:46+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: The profit and loss account

  • Organisations that operate on a profit basis traditionally prepare what used to be known as a trading and profit and loss account
  • Nowadays it is more generally known as an Income Statement
  • In strict financial accounting parlance it is called a Statement of Comprehensive […]
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Business Studies: The balance sheet

By |2022-09-15T12:33:45+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: The balance sheet

  • The entire financial accounting function rests on the premise that there are two aspects to every transaction
  • A debit and a credit
  • For every transaction a debit and credit is recorded
  • For example in a cash sale the asset of cash increases and is therefore credited […]
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Business Studies: Financial statements

By |2022-09-15T12:33:45+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Business Studies 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 made at […]
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Business Studies: Ratio Analysis: Introduction

By |2022-09-15T12:33:45+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes|

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

  • Businesses record financial transactions as part of the finance and accounting function
  • This financial information is presented in the form of financial statements also known as final accounts at the end of each year/trading period
  • This information is used by various stakeholders of the business to make […]
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Business Studies: Profitability Ratios

By |2022-09-15T12:33:44+02:00January 24th, 2023|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Profitability Ratios

  • These measures indicate how well a business is performing in terms of its ability to generate profit
  • The ratios relate profits to sales and assets
  • There are three commonly used ratios:
  • Return on Capital Employed (ROCE)
  • Profit Margin and
  • Profit Markup

Return on Capital Employed

  • Is normally […]
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