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Topic: Income statements and Statement of Financial Position Lesson Plan ‘MS word doc.’ IGCSE Bus Studies
User guidelines:
Use these materials to engage your students and relax. You can consistently produce A*s, As, and Bs.

Lesson Objectives
At the completion of the lesson, all students should be able to;
describe what profit is and why it is important: •• How a profit is made
•• Importance of profit to private sector businesses, e.g. reward for risk-taking/enterprise, source of finance. •• Difference between Profit and cash
Income statements: •• Main features of an income statement, e.g. revenue, cost of sales, gross profit, profit and retained profit. •• Use simple income statements in decision making based on profit calculations (constructing income statements will not be assessed)
The main elements of a statement of financial position: • main classifications of assets and liabilities, using examples. Interpret a simple statement of financial position and make deductions from it, e.g. how a business is financing its activities and what assets it owns, sale of inventories to raise finance.