IB Business Management Revision

Finance & Accounts

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

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
Discount rateRate used to bring future cash to today
RevenueTotal income from sales
Gross profitRevenue minus cost of sales

Practise Finance & Accounts — free games

Test yourself with these quick revision games for this topic:

▶ Two Truths, One Lie▶ Reveal Race▶ Connections Grid▶ Falling Words▶ Word Web

See all 17 games in the Subjects Arcade →

More IB Business Management topics

Business Organization & EnvironmentHuman Resource ManagementMarketingOperations ManagementStrategy & Decision MakingGlobalization & Ethics

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