Earning Criteria

• Learners will understand accounting terms and terminology and the two main financial reporting statements: the income statement (often called the ‘profit and loss account’) and the balance sheet.
• Learners will understand the importance of financial reporting for managerial use and the role of accounting in how an organisation’s transactions are recorded and reported.
• Learners will understand how to use financial ratios to measure financial performance. Learners will understand key financial ratios that help managers and leaders use to assess performance and identify some useful ratios for their organisation.
• Learners explore a range of techniques and approaches that help managers and leaders assess the impact on costs of changing scenarios, as well as assess the implications of allocating overhead costs and how costs might change as decisions are taken.
• Learners will understand the importance of cash and cash flow forecasts in financially managing an organisation alongside how forecasts are put together and reviewed.