UNIT 5 P5,M2
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BUSINESS LEVEL 3 UNIT 5 - P1,P2,P3,P4,P5,M1,M2&D1&D2
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Delivery of this unit should include a variety of methods that use a range of sources
and resources to enable learners to gain a wider knowledge and appreciation of the
accounting function. Accounting is a vital part of any organisation that deals with
money or monetary worth. Learners should be encouraged to appreciate that the
knowledge and skill
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UNIT 5 P5,M2&D2 - perform ratio analysis to measure the profitability, liquidity and efficiency of a given organisation,analyse the performance of a b
- Answers • 7 pages • 2016
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For P5, learners will outline clearly what is meant by the terms profitability, liquidity
and efficiency. That description will include the meaning and relevance of each
ratio. For M2, learners will identify the accounting ratios they will use to measure
profitability, liquidity and efficiency and will calculate these accurately, based on
the trading and profit and loss account and the balance sheet. The relevant
accounting ratios from the previous year, or from another similar type of business
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