Lesson Plan

• Describe the nature and purpose of current assets on a statement of financial position.
• Explain how cash, trade receivables, and inventory are valued and presented.
• Calculate and interpret the current ratio and quick ratio using given data.
• Apply FIFO (or alternative) inventory valuation to a sample scenario.
• Analyse the impact of an allowance for doubtful debts on trade receivables.

• Projector and screen
• Whiteboard and markers
• Printed worksheet with balance‑sheet extracts
• Calculator for each student
• Sample inventory valuation cards
• Quick‑ratio and current‑ratio formula handout

Begin with a quick poll: “What assets can a business turn into cash within a year?” Connect this to prior learning about assets vs. liabilities, then outline that today’s success criteria are to identify, value, and use current assets in liquidity ratios.

1. Do‑now (5’) – Short quiz on asset vs. liability definitions.
2. Mini‑lecture (10’) – Explain the statement of financial position and locate the current‑asset section.
3. Group analysis (12’) – Examine a sample balance sheet, identify cash, trade receivables, inventory, and total current assets.
4. Valuation focus (10’) – Demonstrate FIFO vs. weighted‑average using inventory cards; students complete a quick calculation.
5. Ratio practice (8’) – Compute current ratio and quick ratio from provided figures; discuss what the results indicate about liquidity.
6. Check for understanding (5’) – Exit ticket: one sentence explaining why an allowance for doubtful debts matters.

Recap the three types of current assets, their valuation methods, and how they feed into liquidity ratios. Collect exit tickets and remind students to complete a homework worksheet that requires them to prepare a simple statement of financial position using given data.