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This is guide which shows the sequence to be followed when preparing the Principals of Accounts school based assessment. It has been written in accordance to the guidelines provided by the Caribbean Examinations Council.
This is guide which shows the sequence to be followed when preparing the Principals of Accounts school based assessment. It has been written in accordance to the guidelines provided by the Caribbean Examinations Council.
This is guide which shows the sequence to be followed when preparing the Principals of Accounts school based assessment. It has been written in accordance to the guidelines provided by the Caribbean Examinations Council.
You are to follow the specific requirements of the sequence of the SBA: #7
Statement about the performance of the business
From the analysis of the final accounts it is safe to conclude that Peter Joseph has made a decent profit and is deemed profitable. After two months of completed trading Mr. Joseph made a Net Profit of $6 667.50.
#8
Further interpretation of results Ratios and Comparison
CHAPTER 42 IN TEXT PAGE 381 (follow the structure of the example given in your textbook) Use one ratio from each category i.e. profitability, liquidity & efficiency. Remember to state what they represent, measure and indicate whether its a good or bad ratio. Also give reasons for your choice. Remember the business is being compared to two months, using two out of three: sales figures, purchase figures OR capital. (Continue with the other requirements of point 8 given in the sba sequence). You are required to use graphs for comparison purposes eg. Comparing sales, purchases, debtors, creditors etc. for the two month period.
Below is an example of how # 8 should be done: (profitability &
liquidity page 381 -382 textbook)
Profitability any ONE of the profitability ratios can be used eg.
Gross Profit & Net profit margin OR Return on capital employed ETC. Liquidity any ONE of the liquidity ratios can be used eg. The Acid test ratio/quick ratio OR the Debtor: Creditor Ratio, Debtors: Sales Ratio, Creditors: Purchases Ratio ETC.
AN EXAMPLE OF THE STRUCTURE/FORMAT
LIQUIDITY We decided to test the liquidity of the firm and used the Current Ratio (refer to textbook page 381) This ratio measures current assets: current liabilities. In general terms, we are comparing assets that will be turned into cash within the two months with liabilities that will have to be paid within the same period. Current Ratio = Current Assets / Current Liabilities Current Ratio = 38 112.50 / 27 725 = 1.3:1 ANALYSIS: from the above ratio we can see that the firms current ratio is acceptable since the results are positive. It also shows that the firm is managing its debts wisely. #9
Suggestions and recommendations
At least 2 suggestions or recommendations that are related to the business or project. Eg. Strategies used marketing, advertising, purchasing in bulk, sourcing cheaper suppliers, managing the resources available, investing capital to get higher returns ets. Elaborate giving the effects and impact these will have on the business performance and success.
#10
Conclusion This area must relate to your aims mentioned previously.
Here are some AIMS that can be used if needed:
The aims of this Principles of Accounts SBA are to: (Choose only one group) To complete the accounting cycle for a business and create the accounting records for the business. To analyse and interpret the performance of the business and assess the financial position of the business using the accounts that were calculated. To make suggestions and recommendations for the business in relation to its performance To study the accounting records in order to evaluate the performance of the business To apply the principles I have learnt to recommend the business to improve their operations To make recommendations for the business so that they can improve to ensure the maximization of profits To show the different accounts that should be drawn up from the different transactions and the relevant books that the account should be posted to To evaluate the performance of the business with my understanding of the principles I have learnt in accounting
To make recommendations for the business in ways it could