ACCOUNTING & FINANCIAL LITERACY
Profitable. But out of cash?
Help students separate sales, profit, and cash by following an order through the books.
Learning goals
- Distinguish demand, revenue, and cash receipts.
- Trace an order through delivery, invoice, and payment.
- Explain the effects of receivables and supplier bills on liquidity.
DISCUSSION PROMPT
Your company reports a profit, but cash has fallen. Which transactions explain the difference?
Suggested sequence
- Predict how an unpaid invoice affects profit and cash.
- Run a round and inspect the operational documents.
- Compare the prediction with the ledger and explain the difference.
Evidence to look for: A transaction trace and a short explanation supported by cash, receivables, and payables.
A proposed teaching outline. Game rounds and connected evidence require classroom rehearsal before use.
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