Accounting
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.
On completion of this unit students should be able to:
- Describe the resources required to establish and operate a business, and select and use accounting reports and other information to discuss the success or otherwise of the business.
- Identify and record financial data, report and explain accounting information for a service business, and suggest and apply appropriate financial and non- financial indicators to measure business performance.
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.
On completion of this unit students should be able to:
- Record and report for inventory and discuss the effect of relevant financial and non-financial factors, and ethical considerations, on the outcome of business decisions.
- Record and report for accounts receivable and accounts payable, and analyse and discuss the effect of relevant decisions on the performance of the business including the influence of ethical considerations.
- Record and report for non-current assets and depreciation.
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.
On completion of this unit students should be able to:
- Record financial data using a double entry system; explain the role of the General Journal, General Ledger and inventory cards in the recording process; and describe, discuss and analyse various aspects of the accounting system, including ethical considerations.
- Record transactions and prepare, interpret and analyse accounting reports for a trading business.
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.
On completion of this unit students should be able to:
- Record financial data and balance day adjustments using a double entry system, report accounting information using an accrual-based system and evaluate the effect of balance day adjustments and alternative methods of depreciation on accounting reports.
- Prepare budgeted accounting reports and variance reports for a trading business using financial and other relevant information, and model, analyse and discuss the effect of alternative strategies on the performance of a business.