Lesson Plan

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Lesson Plan
Grade: Date: 05/03/2026
Subject: Business Studies
Lesson Topic: users of accounts and ratio analysis: external, e.g. suppliers, government, lenders/banks
Learning Objective/s:
  • Identify the three main external users of business accounts (suppliers, government, lenders/banks).
  • Explain how each user employs specific financial ratios to assess creditworthiness, statutory compliance, and profitability.
  • Calculate and interpret key liquidity, solvency and profitability ratios using given financial data.
  • Evaluate the implications of ratio analysis for decision‑making by each external user.
Materials Needed:
  • Projector and screen
  • Printed worksheet with financial data and calculation tasks
  • Calculator or spreadsheet software
  • Whiteboard and markers
  • Handout summarising each external user’s key ratios
 Introduction:
Begin with a quick poll: who has heard a supplier or bank request financial statements? Review prior knowledge of basic financial statements, then outline today’s success criteria – students will identify external users, calculate key ratios, and explain how those ratios guide users’ decisions.
Lesson Structure:
  1. Do‑now (5’) – Students list external users of accounts on sticky notes; share and categorize.
  2. Mini‑lecture (10’) – Introduce ratio analysis for external users and present the six key ratios with formulas.
  3. Guided practice (15’) – In pairs, calculate the ratios for the hypothetical business using calculators or spreadsheets.
  4. Interpretation activity (10’) – Groups match each ratio to the appropriate external user and discuss its meaning.
  5. Quick check (5’) – Teacher asks targeted questions; students respond via clickers or show of hands.
  6. Exit ticket (5’) – Students write one ratio, the external user who uses it, and a brief interpretation.
Conclusion:
Recap how ratio analysis equips external users with insight into liquidity, solvency and profitability. Collect exit tickets as a retrieval check and assign homework: complete a short case study calculating and interpreting ratios for a new company.