Accounting

Overview:

This subject focuses on the procedures of accounting and finance and the way in which these may be used. The study examines the processes of recording and reporting financial information to provide users with appropriate information for planning, control and effective decision-making.

Units 1 & 2

Unit 1: Role of accounting in business

This unit focuses on the establishment of a small business, including various available sources of finance as well as determining the success or failure of a business. It also examines the recording of financial data and the reporting and analysing of financial information from owners, managers, accountants as well as other various users. The focus of unit one is cash accounting.

Unit 2: Accounting and decision-making for a trading business

This unit continues to focus on developing the students understanding of the accounting process associated with operating a business. They examine stock (inventory), accounts receivable and payable as well as non-current assets. Students also analyse and evaluate businesses from these standpoints.

Assessment activities:

  • Small business study
  • Recording and reporting of financial data
  • Recording and reporting, bank reconciliations and cash budgeting
  • Evaluation of business performance
  • ICT in Accounting
  • Recording and reporting of financial data
  • End of unit exams

Selection advice:

Students need to be competent from both a Literacy and Numeracy standpoint as there is a significant amount of key vocabulary and knowledge that needs to be understood. Skills in areas like fractions and percentages are prevalent throughout the recording and reporting parts of the unit as well. Students must also be prepared to utilise ICT to support their learning. For example, have some understanding of Microsoft Excel.

Links to further pathways:

Accounting provides an excellent background for employment in a range of business and management positions. It can also be useful for students who are likely to run their own small business. Accounting can provide the basis for a career in some of the high growth areas of employment including finance, property, business services, recreational and personal services.

Accounting Units 3 & 4

Unit 3: Financial accounting for a trading business

Unit 3 and 4 are designed to be completed as a sequence. Unit 3 focuses on financial accounting for a trading business. By this end of this unit, students can use a double entry accounting system to record and report financial information under the accrual basis of accounting. Students develop their understanding of the accounting processes and consider the effect of decisions made on the performance of the business.

Unit 4: Recording, reporting, budgeting and decision-making

In Unit 4, students extend their understanding of the recording and reporting process with the inclusion of balance day adjustments. They can analyse and interpret accounting information to prepare budgets, to help decision-makings and to evaluate the performance of a business.

Assessment activities

  • Structured questions (manual and ICT based): record data using a double entry system in General Journal, General Ledger and Inventory Cards, including ethical considerations.
  • A case study (manual and ICT based): record transactions and prepare, interpret and analyse accounting reports for a trading business.
  • Folio of exercises (manual and ICT based): record financial data and balance day adjustments using a double entry system, report accounting information using an accrual-based system.
  • Structured questions (manual and ICT based): prepare budgeted accounting reports and variance reports
  • End of year examination (50%) for a trading business.

Links to further pathways

This course will provide access to most tertiary commerce courses. This allows students to follow many career paths including, but not limited to:

  • Corporation and taxation accountant
  • teaching
  • National business
  • International business

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