5.3 Profit and Loss

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5.3 Profit and Loss: Cambridge IGCSE Business 0264 lesson

5.3 Profit and Loss is one of the 5 lessons in Unit 5 Financial Information and Decisions of Cambridge IGCSE Business 0264, for first examination in 2027. It is an editable PowerPoint of 22 slides written against syllabus sections 5.3.1 and 5.3.2, with 1 learning check and an exit ticket. Also suitable for Cambridge IGCSE (9-1) Business 0774 and Cambridge O Level Business 7081, which share the same content.

What profit is and why it matters, the structure of a statement of profit or loss, the profit formulas and a practice slide calculating gross profit and profit. The case study is Sam's Cafe, where students calculate profit as a percentage of revenue and decide whether switching to cheaper ingredients is worth it. Who uses the statement, profit against cash, and the limitations of the statement round it off. No constructing statements, in line with the syllabus note, and no embedded video.

Slide from lesson 5.3 of Cambridge IGCSE Business 0264: Profit and Loss

Learning objectives

Taken from the objectives slide of the lesson, which follows the syllabus wording.

5.3.1 What is profit and why it is important

  • what profit is
  • importance of profit to private sector businesses: reward for risk-taking, source of finance, measure of success, attract investors

5.3.2 Statement of profit or loss

  • main features of a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit
  • make simple calculations based on a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit
  • make decisions based on simple statements of profit or loss

Note: candidates will not be assessed on constructing statements of profit or loss.

What is in the lesson

The running order below is the deck as sold. Every lesson in the course follows the same shape: learning objectives, content slides with the real business examples, a learning check after each section, a case study with questions, key takeaways and an exit ticket. A teacher answer key (PDF), with model answers to every learning check, case question and exit ticket, is included when you buy the unit or the complete course.

Slide by slide (22 slides)
  1. Title slide
  2. Learning Objectives
  3. What is Profit?
  4. Key Financial Terms
  5. Profit Types
  6. Statement of Profit or Loss Structure
  7. Profit Formulas
  8. Practice: Calculating Gross Profit and Profit
  9. Learning Check – Profit
  10. Case Study: Sam's Café
  11. Strategic Decision: Cheaper Ingredients?
  12. Why Profit Matters
  13. Who Uses Statements of Profit or Loss?
  14. Profit vs Cash: The Critical Difference
  15. Importance of Accurate Records
  16. Using Statements of Profit or Loss
  17. Common Mistakes to Avoid
  18. Sample Statement: Gross Profit
  19. Purpose of the Statement of Profit or Loss
  20. Limitations of the Statement of Profit or Loss
  21. Key Takeaways
  22. Exit Ticket

Where it fits

Week 31 of the 0264 scheme of work and pacing guide, which gives the course 46 weeks with a mock in week 41. Previous lesson: 5.2 Cash Flow Forecast. Next lesson: 5.4 Statement of Financial Position. All 28 lessons: Cambridge IGCSE Business 0264.

How to buy

The lesson on its own: 5.3 Profit and Loss on TES. The unit: Unit 5 Financial Information and Decisions. The whole course in one download: 0264 Complete Bundle. Lesson 1.1 is free with its answer key if you want to see the format first.