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IB Business Management Revision

Finance & Accounts

Sources of finance, costs and revenues, accounts and investment appraisal.

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Finance & Accounts is a core part of IB Business Management. Revise the key concepts and common mistakes below, then lock them in with the free games.

Key concepts

Current ratioCurrent assets / current liabilities
LiquidityAbility to pay short-term debts
ROCEOperating profit / capital employed ×100
GearingLong-term debt / capital employed ×100
Capital employedEquity + long-term liabilities
Acid test(Current assets − stock) / current liabilities
Break-evenOutput where revenue = total cost
ContributionPrice minus variable cost per unit
Payback periodTime to recoup the initial outlay
ARRAvg annual profit / outlay ×100
NPVSum of discounted future cash flows minus the initial outlay.
Discount rateRate used to bring future cash to today
RevenueTotal income from sales
Gross profitRevenue minus cost of sales

What your exam board covers

Where Finance & Accounts sits in each exam board's specification. Tap a board to see what it lists.

HLUnit 3 — Finance and accounts
  • 3.1 Introduction to finance
  • 3.2 Sources of finance
  • 3.3 Costs and revenues
  • 3.4 Final accounts
  • 3.5 Profitability and liquidity ratio analysis
  • 3.6 Debt/equity ratio analysis (HL only)
  • 3.7 Cash flow
  • 3.8 Investment appraisal
  • 3.9 Budgets (HL only)

Source: IB Diploma Business Management guide (first assessment 2024), accessed 23 June 2026.

SLUnit 3 — Finance and accounts
  • 3.1 Introduction to finance
  • 3.2 Sources of finance
  • 3.3 Costs and revenues
  • 3.4 Final accounts
  • 3.5 Profitability and liquidity ratio analysis
  • 3.7 Cash flow
  • 3.8 Investment appraisal

Source: IB Diploma Business Management guide (first assessment 2024), accessed 23 June 2026.

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