Rationale: Accounting involves modelling, forecasting and providing advice to stakeholders through the process of collecting, recording, reporting, analysing and interpreting financial and non-financial data and accounting information. This data and information is communicated to internal and external stakeholders and is used to inform decision-making within the business with a view to improving business performance. Accounting plays an integral role in the successful operation and management of businesses.
AC011 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
- 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.
AC022 UNIT 2: ACCOUNTING & 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.
Areas of Study
- Accounting for inventory
- Accounting for and managing accounts receivable and accounts payable
- Accounting for and managing non-current assets
- 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
Assessment for Unit 1 & 2: S or N based on the demonstrated achievement of the outcomes specified above.