Unit 1: Role of accounting in business
This unit explores the establishment of a business and the role of accounting in the determination of business success or failure. In this, it considers the importance of accounting information to stakeholders. Students analyse, interpret and evaluate the performance of the business using financial and non-financial information. They use these evaluations to make recommendations regarding the suitability of a business as an investment.
Areas of Study
• The role of accounting
• Recording financial data and reporting accounting information for a service business
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Unit 2: Accounting and decision-making for a trading business
In this unit students develop their knowledge of the accounting process for sole proprietors operating a trading business, with a focus on inventory, accounts receivable, accounts payable and non-current assets. Students use manual processes and ICT, including spreadsheets, to prepare historical and budgeted accounting reports.
Students analyse and evaluate the performance of the business relating to inventory, accounts receivable, accounts payable and non-current assets. They use relevant financial and other information to predict, budget and compare potential effects of alternatives strategies on the performance of the business. Using these evaluations, students develop and suggest to the owner strategies to improve business performance.
Areas of Study
• Accounting for inventory
• Accounting for managing accounts receivable and accounts payable
• Accounting for and managing non-current assets
A Student’s Perspective!
Unit 3: Financial accounting for a trading business
This unit focuses on financial accounting for a trading business owned by a sole proprietor, and highlights the role of accounting as an information system. Students use the double entry system of recording of financial data and prepare reports using the accrual basis of accounting and the perpetual method of inventory recording.
Students develop their understanding of the accounting processes for recording and reporting and consider the effects of decisions made on the performance of the business. They interpret reports and information presented in a variety of formats and suggest strategies to the owner to improve the performance of the business.
Areas of Study
• Recording and analysing financial data
• Preparing and interpreting accounting reports
Unit 4: Recording, reporting, budgeting and decision-making
In this unit students further develop their understanding of accounting for a trading business owned by a sole proprietor and the role of accounting as an information system. Students use the double entry system recording financial data, and prepare reporting using the accrual basis of accounting and the perpetual method of inventory recording. Both manual and methods and ICT are used to record and report.
Students extend their understanding of the recording and reporting process with the inclusion of balance day adjustments and alternative depreciation methods. They investigate both the role and importance of budgeting in decision-making for a business. They analyse and interpret accounting reports and graphical representations to evaluate the performance of a business. From this evaluation, students suggest strategies to business owners to improve business performance.
Areas of Study
• Extension of recording and reporting
• Budgeting and decision-making
Assessment for Units 3 & 4
At least 30 marks of school assessed coursework will be ICT-based.
The student’s level of achievement in Unit 3 and 4 will be determined by School-assessed Coursework and an end-of-year examination.
School-assessed Coursework for Unit 3 and 4 will contribute 50 per cent.
The level of achievement for Units 3 and 4 is also assessed by an end-of-year examination, which will contribute 50 per cent.
Studying Accounting may to lead to:
University – Bachelor degrees in: Economics, Business Systems, Banking & Finance, Marketing, Management, Business, Information Technology, Arts/Commerce, International Trade, Tourism & Hospitality, Teacher Education, Commerce/Law, Social Sciences
Employment opportunities include: Banking, Insurance, Marketing, Finance, International Trade, Travel & Tourism, Clerical Work, Public Administration, Local Government, Real Estate, Sales & Retail, Auditor, Accountant.
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