LO4 - Be able to use Financial Information.pdf

LO4 - BE ABLE TO USE FINANCIAL INFORMATION TO CHECK THE FINANCIAL HEALTH OF BUSINESSES Stakeholders - a person or group of people who own a share in a business. a person such as an employee, customer, or citizen who is involved with an organization, society, etc. and therefore h...

LO4 - BE ABLE TO USE FINANCIAL INFORMATION TO CHECK THE FINANCIAL HEALTH OF BUSINESSES Stakeholders - a person or group of people who own a share in a business. a person such as an employee, customer, or citizen who is involved with an organization, society, etc. and therefore has responsibilities towards it and an interest in its success. HTTPS://WWW.BBC.CO.UK/NEWS/BUSINESS-53343077?INTLINK_FROM_URL=HTTPS://WWW.BBC.CO.UK/NEWS/BUSINESS/ECONOMY&LINK _LOCATION=LIVE-REPORTING-STORY STARTER If you were a stakeholder, what financial information would you want to see? A. Look for the number of sales and amount of profit. Where can stakeholders get financial information from? A. During the past reporting period such as annual report. How does it help stakeholders decide if the business is financially viable? A. Income , cash flow , net worth etc. What business have been financially impacted from the coronavirus pandemic? A. Wholesale and retail stores such as boots. even restaurants or accommodations rent places. https://www.bbc.co.uk/news/business-53348519 https://www.bbc.co.uk/news/uk-england-derbyshire-53346539?intlink_from_url=https://www.bbc.co.uk/news/business/compa nies&link_location=live-reporting-story RETRIEVAL PRACTICE 1) What does the income statement show stakeholders? 2) What’s the formula to work out the gross and net profit? 3) Give me 3 facts about the income statement REVIEW OF THE STATEMENT OF FINANCIAL POSITION ◼ 1) What’s the difference between, assets, liabilities and total equity? ◼ 2) What is the formula of the accounting equation?