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Level 4 Assignment Guide
2022/2023
Business Finance and
Economics
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Contents Page No.
1. Introduction…………………………………………………………………………………..3
2. Written Assignment Guidance …………………………………………………………4
2.1. Task One – Business Performance and Competition ……………………. 4
2.2. Task Two – The Role of Accounting……………………………………………. 4
2.3. Task Four – Financial Ratios ……………………………………………………….. 4
2.4. Task Five – Management Accounting………………………………………….. 7
3. Conclusion …………………………………………………………………………………….8
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1. Introduction
The Assignment Guide should be used in conjunction with the Assignment Brief as its
purpose is to provide guidance as to how best to respond to the requirements of the
assignment brief. It also gives an indication of what the marker will be looking for in the
piece of work.
All five learning outcomes are addressed within the tasks of the assignment:
1) Explain how micro- and macroeconomics impact on the competitive environment of
an organization;
2) Demonstrate knowledge of the role of accounting within the organisation with
respect to both reporting and decision-making aspects;
3) Explain the structure and terms used within the main financial statements;
4) Interpret management accounting techniques for planning, control and decisionmaking within the organisation;
5) Calculate the main accounting ratios and explain their significance in terms of
organisational performance.
To succeed in the module you must satisfy all learning outcomes, which in turn means
addressing each part of the assignment brief – missing something out will impact your grade
negatively.
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2. Written Assignment Task Guidance
2.1. Task One – Business Performance and Competition
“Define the two major branches of economics and discuss how they influence business
performance.”
a) Refer to the taught element and recommended readings to help focus on the most
relevant aspects before undertaking any further research.
b) Define both macro and microeconomics.
c) Discuss the macroeconomic factors that impact on business performance.
d) Discuss the microeconomic factors that influence business performance.
e) Provide citation(s) directly relevant to each part of the question. This should be the
main text, plus an additional text or a peer-reviewed article from a reputable
journal.
f) Word Count: 700 max.
2.2 Task Two – The Role of Accounting.
“Explain accounting conventions and evaluate how important they are in the
preparation of the three major financial statements.”
a) Before typing this section use the information from lecture 2 and the research you
have carried out.
b) Explain the role of accounting within an organization – discuss what accounting is
concerned with and its branches;
c) Explain all the five accounting conventions needed for financial reporting and
discuss their importance.
d) Use examples to support your claims/arguments
e) Use citations from the main text as well as from an additional text or refereed article
from a reputable journal
f) Word Count: 600 max.
2.3 Task Three – Financial Ratios
“Using the information from the given financial statements, the statement of financial
position (balance sheets) and income statement (profit & loss accounts) below, calculate
and interpret the following ratios for XYZ Plc for the years ended March 31 2019 and 2020,
respectively (550 words):
i) Operating Profit Margin
ii) Inventory days
iii) Payable period
iv) Receivable period
v) Acid Test Ratio
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vi) EPS (Earnings Per Share)”
a) Refer to Lecture 3 and prescribed readings to refresh the key financial ratios and
formulas used to determine them.
b) Identify the relevant formula for each ratio to be calculated.
c) For each ratio calculated, ensure that the relevant formula is shown / displayed
within your answer in full.
d) Refer to the financial statements provided to obtain the relevant information /
figures and input them to the formulas in order to calculate the appropriate ratios.
e) In addition to d) above, pay attention to the notes (i-vii) at the end of the statements
as you will have to use some of the figures provided within those for your
calculations
f) Provide the results in days, percentage or decimal terms depending on the ratio
you are calculating
g) Interpret the meaning / significance of each ratio calculated and explain any
implications for XYZ Plc.
h) Use relevant citations – one of which must be from the main reading.
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XYZ Plc
Statements of financial position (Balance Sheets) as at 31 March

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Income Statements (Profit & Loss Accounts) for the year ended 31 March

Notes:
ii.The market value of the shares of the business at the end of the reporting period was £3.00 for
2019 and £2.00 for 2020.
iii.All sales and purchases are made on credit.
iv. At 1 April 2018, the trade receivables stood at £250 million and the trade payables at £210
million.
v. A dividend of £40 million had been paid to the shareholders in respect of each of the years.
vi.The business employed 14,000 staff at 31 March 2019 and 18,628 at 31 March 2020.
vii.The business expanded its capacity during 2020 by setting up a new warehouse and distribution
centre.
viii.At 1 April 2018, the total of equity stood at £450 million and the total of equity and noncurrent liabilities stood at £650 million.
2.4Task Four – Management Accounting
“Define management accounting and discuss how this is important for planning, control
and decision-making within an organization.”
a) Refer to Lecture 4 and prescribed readings to identify the relevant content before
you undertake further research.
b) Clearly define management accounting; direct / paraphrased quotations appropriate
in-text citations and referencing must be supplied.
c) Discuss the importance of management accounting with respect to planning, control
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and decision-making in business. See Lecture 4 to help identify key aspects.
d) Use relevant citations – one of which must be from the main reading.
e) Word Count 650 max.
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3. Conclusion
This written assignment, like all other pieces of work for Higher Education studies,
requires you to base your thoughts, statements, and ideas on research.
Please remember to:
a) Ensure that each piece of information you use in your work comes from research
– never your own thoughts.
b) That you follow the Harvard Reference System on the reference page and within
your work.
c) That the writing style that you adopt is academic i.e. third person, uses
appropriate specialist language, and has no conjunctions.
d) That the written assignment followed the required structure – refer to the
guidance given during your Foundation Year modules.