SCQF Level 7


Flexible start date




  • Business & Management


  • Online

Why take this course?

Business organisations need to analyse their financial position in terms of profitability, liquidity and efficiency and you will learn how to calculate and analyse accounting ratios to provide this information.

This is a mandatory Unit within the PDA Financial Accounting and the HNC/HND Accounting Group Award. It may also be taken as part of other HN Group Awards as an optional Unit, or can be taken as a stand alone HN Unit.

What you will experience

This course will introduce you to the financial statements of sole traders (from incomplete records), partnerships and limited companies that operate as either traders or manufacturers. The financial statements comprise of income statements and statement of financial position and you will learn how to prepare and present these statements in accordance with current accounting standards.

As cash flow is important to businesses you will learn how to produce statement of cash flows for limited companies.

This Unit is primarily intended for candidates who expect to take up a career or further study in accounting and/or financial administration. It is also relevant to those with appropriate work experience who wish to formalise their financial accounting skills. On completion of the Unit you should be able to:

1. Prepare financial statements for business organisations;
2. Prepare financial statements, for a sole trader, from incomplete records;
3. Prepare a statement of cash flows for a limited company;
4. Use accounting ratios to analyse financial statements of a limited company.

The assessments for this Unit will be carried out under supervised conditions.