Business activity and influences on business

Worked examples (4)

• 1Calculate gross, operating and net profit (5 marks, Paper 1)
• 2Apply the accounting equation (3 marks, Paper 1)
• 3Identify users and their interests (4 marks, Paper 1)
• 4Interpret a change in financial position (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Identify the purpose of finance for different businesses (4 marks, Paper 1)
• 2Explain three internal sources of finance (6 marks, Paper 1)
• 3Recommend a short-term source for a cash flow gap (5 marks, Paper 1)
• 4Compare bank loan and share issue for £2m expansion (6 marks, Paper 2)
• 5Apply the finance framework to a case (9 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Explain why profit ≠ cash flow (4 marks, Paper 1)
• 2Complete a cash flow forecast (6 marks, Paper 1)
• 3Explain three benefits of cash flow forecasting (6 marks, Paper 1)
• 4Diagnose causes of cash flow problems (5 marks, Paper 2)
• 5Recommend four strategies to improve cash flow (8 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (6)

• 1Classify costs as fixed or variable (4 marks, Paper 1)
• 2Calculate contribution per unit (3 marks, Paper 1)
• 3Calculate the break-even point (4 marks, Paper 1)
• 4Calculate the margin of safety (3 marks, Paper 1)
• 5Interpret a break-even chart (4 marks, Paper 2)
• 6Discuss uses and limitations of break-even analysis (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 1, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 1, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (4)

• 1Calculate GPM, NPM and ROCE (6 marks, Paper 2)
• 2Calculate current ratio and acid test (4 marks, Paper 2)
• 3Interpret a year-on-year ratio trend (5 marks, Paper 2)
• 4Recommend improvements to a struggling ratio set (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4BS1-style — Paper 2, 8 mark explain
• ✓Model answer — 4BS1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4BS1-style — Paper 2, 12 mark evaluate (challenge)