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Finance and Accounts 2: Analysing Accounts - Lesson Plan: Flexible

A series of 'off the shelf' lesson plans and resources for use in the classroom. These lessons deal with Analysing Accounts and are relevant to the following specifications:

  • AQA: Module 1, 10.5; Module 4, 13.5
  • Edexcel: Unit 3, Section 1
  • OCR: Modules 2872, 2873 and 2875

The aim of these lessons is to build student confidence with using accounting ratios and in interpreting the information provided by such ratios. The Company Info section on Biz/ed contains a detailed resource covering all aspects of accounting ratios. These lessons make use of this resource to help develop student skills.

The Activity will give the students some background information guiding them through the resource. It should be noted that whilst the Company Info section gives information about performance ratios such as 'Price/Earnings Ratio' it is not necessary to cover some of these ratios for the purposes of the AS examination - educators should be selective in relation to the board being followed.

Learning Objectives:

At the end of these lessons students should:

  • Be able to use the key accounting ratios for profitability, liquidity and performance
  • Be confident in calculating ratios as appropriate to the task
  • Be confident in interpreting the results of the accounting ratios used

Resources:

Lesson Structure:

The approach to the lessons is very flexible and will depend on the degree of detail to which the educator wishes to go. The resources in the Company Info section lead the student through the tasks providing clear guidance throughout. Additional tasks are set for students as appropriate and these can be pursued allowing a degree of differentiation.

It is suggested that the lesson/s are broken up into input and activity sessions by using the Presentation to introduce each section (profitability, liquidity, etc.) and then the students can be set the tasks in the relevant section of the ratio analysis resource. There are additional questions throughout and advanced sections for those students who progress through the Activity more quickly.