Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: current liabilities, e.g. trade payables, overdraft
Learning Objective/s:
  • Describe the purpose and components of current liabilities in a statement of financial position.
  • Calculate working capital and interpret its significance for liquidity.
  • Identify and differentiate common current liabilities such as trade payables, bank overdraft, accrued expenses, tax payable, and short‑term loans.
  • Analyse the impact of current liabilities on cash‑flow management and credit decisions.
  • Apply the payables turnover ratio to evaluate the efficiency of trade payables.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with balance‑sheet extract
  • Calculator or spreadsheet software
  • Whiteboard markers
  • Handout summarising current liability types
  • Sticky notes for group activity
 Introduction:
Begin with a quick poll: “What would happen if a company couldn’t pay its suppliers this month?” Connect to prior learning on assets and the accounting equation, then outline that today students will explore current liabilities and how they affect liquidity, with success measured by correctly calculating working capital.
Lesson Structure:
  1. Do‑now (5’) – Short quiz on assets vs. liabilities to activate prior knowledge.
  2. Mini‑lecture (10’) – Explain current liabilities, show classification diagram, define each type (trade payables, overdraft, etc.).
  3. Guided practice (12’) – Identify current liabilities in the provided balance‑sheet extract and calculate working capital.
  4. Group activity (10’) – Compute the payables turnover ratio from sample data and discuss cash‑flow implications.
  5. Case discussion (8’) – Evaluate a scenario with high current liabilities and propose management actions.
  6. Check for understanding (5’) – Exit ticket: list two ways a business can improve its current‑liability position.
Conclusion:
Summarise how current liabilities fit into the balance sheet and their role in liquidity analysis. Students complete an exit ticket naming one strategy to manage current liabilities, and for homework they will analyse a real‑world company’s balance sheet and report on its working capital.