Profit & loss accounts
> Candidates should understand the importance of a profit and loss account to the stakeholders when assessing the performance of the business.
> Candidates should be able to identify the various components of a profit and loss accoount.
> Candidates should be able to make judgements on the performance of a business through interpretation of the information contained in simplified versions of the profit and loss accounts by the application of gross and net profit margins.
Exam tip : Candidates will be given the relevant formulae for ratios, where appropriate, as part of the examination paper.