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Btec Unit 2 Business resources P5, P6 and P7
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This document has P5, P6 and P7. It is from the BTEC Level 3 course about business resources.
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ROCvA MBO College Amstelland, International Business StudiesLearner’s Declaration: Claire Haker
I certify that the work submitted for this Assignment is my own.
Signed: CEHaker
Date: 30 January 2020
Name of Assessor: L. Cornelissen
Name of Internal Verifier: N. Moussa
BTEC NATIONAL DIPLOMA in Business
2019-2020
UNIT 02: Business Resources
Hand in of Task 3 (P5, P6, P7, M3, M4, D2, D3)
BTEC Nationals in Business, Unit 2 Business Resources, Cohort 2019-2020
1
, Unit 2 Task 3
Claire Haker
P5
the purpose of profit and loss is that the investors and creditors can look at how the company uses
their resources effectively with an quick look.
The use of an profit and loss is that it is most called the income statement. It is an financial
statement that summarizes the revenues, cost and expenses. Incurred with an period of time, , it is
mostly a period of an quarter of an year. The information provides the company´s ability or lack to
increase the revenue, reducing costs or both.
The use of an balance sheet is that it shows the company´s resources and assets with the way how it
is financed. it provides the investors and creditors to give an fast look at how the company´s
management uses those resources. it is used to conduct a financial analysis and to calculate the ratio
´s.
the purpose of an balance sheet is that it reports an company´s assets, liabilities and shareholders’
equity in a point of time. It gives a basis for computing rates of return and evaluate the structure of
the capital. What an company has and has to pay back, well as the amount invested in shareholders.
The explanation of cost of goods sold is the total amount of products that the retailer, distributor or
manufacturer has sold. It is reported from the income statement that should be seen as an expense
of the accounting period. The cost sold would get matched with the revenues what gives as outcome
the matching principle.
The interpretation is that the cost of goods sold is subtracted from the net sales with the result of
gross profit.
The explanation of overheads section is that it is the cost over the income statement that are made.
That the company as example buys more sugar for the cupcakes they need to pay more that period
because they bought more sugar.
The gross profit is what the company has made from money when the sales revenue is minus the
cost of goods sold. The gross profit is the profit without the taxes, salary and operating cost. With
Donut Cupcakes it would be 440 minus 240 pond. And the net profit is calculated with the gross
profit minus the total expenses. That brings us to the number of the net profit of 83.800
The explanation of kinds of income and expenditure is that the income is more than the expenses.
So the company of Donut Cupcakes makes profit. It is also called a surplus, there are three different
kinds of income fixed, variable and occasional income.
The elements from the balance sheet are the assets, liabilities and total equity. We going to start
with the assets. The resources that the company owns which have value for the company what can
be measured and expressed with cash. As examples it could be a machine or a vehicle. The formula
for the assets is liability´s + owner stock hold. Next we have the liability´s this is the money that the
company lends from suppliers or the bank. There can be a short or an long term liability´s. The long
term can take up to twelve months. The payments from the liabilities are mostly pay for large
BTEC Nationals in Business, Unit 2 Business Resources, Cohort 2019-2020
2
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