Distinguish between a balance sheet, a profit and loss (or income) statement and a statement of cash flows.

Health economics

• Distinguish between a balance sheet, a profit and loss (or income) statement and a statement of cash flows.

• Identify the five major accounting categories – assets, liabilities, owner’s equity, revenues and expenses – and give examples of these.

• Apply a working knowledge of the doctrines and conventions of accounting – such as relevance, reliability, materiality and timeliness.

• Analyse why actual figures are different from budgeted figures.

• Recommend changes to the financial arrangements in an organisation which will improve the effectiveness of accounting controls.

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