Chapter Name: Analyse an income and expenditure statement
Description:Instructs how to interpret revenue, cost of sales, and expenses to determine profitability.
Purpuse:To monitor financial health and make cost-control decisions.
Rational:Regular financial analysis helps identify issues early and guides growth strategies.
Chapter Assessment
Expected Supporting Evidence:
Portfolio of Evidence 1: An explanation is given of how income and expenditure statements are applied in terms of their purpose. - Clarifies the use of these statements to measure profitability and guide financial decision-making.
Portfolio of Evidence 2: Sources of income and expenditure statements are identified for a new venture. - Identifies typical income sources (e.g., sales) and expenses (e.g., rent, wages) for a specific business.
Portfolio of Evidence 3: Income and expenditure statements are evaluated to determine the financial viability of new venture. - Interprets figures to assess if income covers expenses, determining if the business is sustainable.
Portfolio of Evidence 4: An income and expenditure statement is created for a new venture. - Shows a completed statement with accurate data entry and format, tailored to the business context.
Workplace Activities
Activity 1: Explain purpose of income/expenditure statements.
Written explanation or presentation.
Activity 2: Identify income and expenses for a venture.
Itemised statement.
Activity 3: Evaluate statement for viability.
Analysis report.
Activity 4: Create income and expenditure statement.
Completed statement.