Accounting

In this area of study, students focus on identifying and recording financial data for a business. They use double entry accounting to record data and generate accounting information in the form of accounting reports and graphical representations. This information is used to assist the owner in making informed decisions about the operation of the business. Students should also consider strategies to improve the performance of the business, taking into account the relevant ethical considerations.

• the accounting assumptions and qualitative characteristics, as applicable
• the accounting assumptions and qualitative characteristics, as applicable
  5
• documents used by a business to record financial transactions
• documents used by a business to record financial transactions
  4
• the accounting elements: assets, liabilities, owner's equity, revenues and expenses
• the accounting elements: assets, liabilities, owner’s equity, revenues and expenses
  3
• the classification of assets and liabilities into categories of current and non-current
• the classification of assets and liabilities into categories of current and non-current
• the effects of transactions on the accounting equation
• the effects of transactions on the accounting equation
  1
• the characteristics of the General Ledger with T-form accounts for manual recording
• the characteristics of the General Ledger with T-form accounts for manual recording
  4
• the GST Clearing account
• the GST Clearing account
  2
• establishment of a double entry system
• the General Journal and General Ledger and their use in recording transactions, both manually and using ICT, including:
  17
• cash payments (GST on settlement discounts excluded)
• establishment of a double entry system
  1
• cash receipts (GST on settlement discounts excluded)
• cash payments (GST on settlement discounts excluded)
  3
• credit sales of inventory
• cash receipts (GST on settlement discounts excluded)
• credit purchases of inventory
• credit sales of inventory
  2
• Sales Returns from accounts receivable
• credit purchases of inventory
  5
• Purchase Returns to accounts payable
• Sales Returns from accounts receivable
  6
• inventory write-down
• Purchase Returns to accounts payable
  2
• inventory loss or gain
• inventory write-down
  4
• correction of errors
• inventory loss or gain
  4
• inventory used for advertising purposes (GST excluded)
• correction of errors
  1
• drawings of inventory by the owner (GST excluded)
• inventory used for advertising purposes (GST excluded)
  3
• contribution of non-current assets at fair value by the owner
• drawings of inventory by the owner (GST excluded)
  1
• the purpose and preparation of the Trial Balance
• contribution of non-current assets at fair value by the owner
  1
• inventory sold
• the purpose and preparation of the Trial Balance
  1
• inventory purchased
• inventory cards using the First-In, First-Out (FIFO) and Identified Cost methods for:
  4
• inventory returned
• inventory sold
  4
• drawings of inventory by the owner
• inventory purchased
  3
• inventory used for advertising
• inventory returned
  2
• inventory loss or gain
• drawings of inventory by the owner
• inventory write-down
• inventory used for advertising
• inventory loss or gain
  1
• inventory valuation
• product cost and period cost
• inventory write-down
  4
• the lower of cost and net realisable value (NRV)
• inventory valuation
  9
• the creation of an allowance for doubtful debts using the Income Statement approach
• product cost and period cost
  7
• the writing-off of bad debts using the allowance method in the subsequent period
• the lower of cost and net realisable value (NRV)
  7
• internal control procedures to safeguard resources against theft and fraud
• the creation of an allowance for doubtful debts using the Income Statement approach
  6
• financial indicators: inventory turnover, accounts payable turnover, accounts receivable turnover
• the writing-off of bad debts using the allowance method in the subsequent period
  8
• non-financial information available to assist analysis and decision-making in relation to inventory, accounts receivable and accounts payable
• internal control procedures to safeguard resources against theft and fraud
  3
• strategies to improve the management of inventory, accounts receivable and accounts payable
• financial indicators: inventory turnover, accounts payable turnover, accounts receivable turnover
  8
• ethical considerations when making business decisions in relation to operating a trading business.
• non-financial information available to assist analysis and decision-making in relation to inventory, accounts receivable and accounts payable
  2
• strategies to improve the management of inventory, accounts receivable and accounts payable
  8
• ethical considerations when making business decisions in relation to operating a trading business.
  2

The preparation of financial reports at the end of the reporting period provides information to be used as a basis for planning and decision-making by the business owner. Students develop their understanding of the accounting processes and complete those processes that are applicable to the end of a reporting period for a trading business. They apply the accrual method of accounting to the preparation of accounting reports and draw a distinction between cash and profit, considering the implications of these differences when using reports to make decisions. Students undertake an analysis of accounting reports and interpret the information, taking into account relevant ethical considerations, in order to evaluate the performance of the business.

• the accounting assumptions and qualitative characteristics
• the accounting assumptions and qualitative characteristics
  2
• documents used by a business to record financial transactions
• documents used by a business to record financial transactions
• the recording of transactions using manual methods and ICT, including spreadsheets
• the recording of transactions using manual methods and ICT, including spreadsheets
  1
• the process of balancing General Ledger accounts for assets, liabilities and owner's equity
• the process of balancing General Ledger accounts for assets, liabilities and owner’s equity
  4
• the recording of closing entries for revenue and expenses in the General Journal and in the General Ledger
• the recording of closing entries for revenue and expenses in the General Journal and in the General Ledger
  7
• the preparation of the Profit and Loss Summary account in the General Ledger, with transfer of profit or loss to the Capital account in the General Journal and the General Ledger
• the preparation of the Profit and Loss Summary account in the General Ledger, with transfer of profit or loss to the Capital account in the General Journal and the General Ledger
  4
• the recording of the transfer of drawings to the Capital account in the General Journal and General Ledger
• the recording of the transfer of drawings to the Capital account in the General Journal and General Ledger
  3
• Income Statement
• the characteristics and use of classified accounting reports:
• Balance Sheet
• Income Statement
  4
• Cash Flow Statement
• Balance Sheet
• the effects of transactions on the accounting reports
• Cash Flow Statement
  7
• the distinction between cash and profit
• the effects of transactions on the accounting reports
  2
• financial indicators and non-financial information used to measure business performance
• the distinction between cash and profit
  4
• graphical representations related to preparing and interpreting accounting reports
• financial indicators and non-financial information used to measure business performance
  11
• strategies to improve business performance
• graphical representations related to preparing and interpreting accounting reports
  5
• ethical considerations in relation to the recording and reporting of accounting information.
• strategies to improve business performance
  3
• ethical considerations in relation to the recording and reporting of accounting information.
  1

In this area of study, students further develop their understanding of the recording and reporting of financial data in the General Journal and General Ledger by focusing on balance day adjustments and the alternative methods of depreciating for non-current depreciable assets. Students prepare accounting reports using manual methods and ICT. They consider the effects of balance day adjustments on the accounting reports, and the implications of using alternative methods of depreciation on the accounting reports and on the performance of the business. They also examine ethical considerations that may affect the recording and reporting of financial data and the effects of these on business performance.

• the accounting assumptions and qualitative characteristics, as applicable
• the accounting assumptions and qualitative characteristics, as applicable
  7
• documents used by a business to record financial transactions
• documents used by a business to record financial transactions
• indicators and other relevant information (financial and non-financial) to measure business performance
• indicators and other relevant information (financial and non-financial) to measure business performance
  5
• the recording of transactions in the General Journal and General Ledger and preparation of classified accounting reports using manual methods and ICT
• the recording of transactions in the General Journal and General Ledger and preparation of classified accounting reports using manual methods and ICT
  11
• the purchase of non-current depreciable assets for cash
• the purchase of non-current depreciable assets for cash
  3
• the purchase of non-current depreciable assets financed by a loan
• the purchase of non-current depreciable assets financed by a loan
• methods of depreciation: straight-line and reducing balance
• methods of depreciation: straight-line and reducing balance
  13
• the implications of alternative methods of depreciation for accounting reports
• the implications of alternative methods of depreciation for accounting reports
  5
• the recording and reporting of the disposal of a non-current depreciable asset
• the recording and reporting of the disposal of a non-current depreciable asset
  14
• GST will apply to the cash disposal of a non-current asset
• GST will apply to the cash disposal of a non-current asset
  2
• GST will not apply to a disposal where there is a trade in of a non-current asset
• GST will not apply to a disposal where there is a trade in of a non-current asset
  3
• prepaid expenses (asset approach), with GST being recorded at the time of payment
• the recording and reporting of balance day adjustments:
  15
• accrued expenses, with GST being recorded at the time of payment
• prepaid expenses (asset approach), with GST being recorded at the time of payment
  6
• the payment of accrued expenses in the subsequent reporting period
• accrued expenses, with GST being recorded at the time of payment
  5
• unearned revenue (liability approach), with no GST recorded at the time of the deposit
• the payment of accrued expenses in the subsequent reporting period
  1
• accrued revenue, with GST being recorded at the time of receipt
• unearned revenue (liability approach), with no GST recorded at the time of the deposit
  3
• receipt of accrued revenue in the subsequent reporting period
• accrued revenue, with GST being recorded at the time of receipt
• the purpose and preparation of an adjusted Trial Balance
• receipt of accrued revenue in the subsequent reporting period
• Cash Flow Statement
• the purpose and preparation of an adjusted Trial Balance
  1
• Income Statement
• the characteristics and use of classified accounting reports:
• Balance Sheet
• Cash Flow Statement
  12
• the effects of transactions on the accounting reports
• Income Statement
  3
• the distinction between cash and profit
• Balance Sheet
  3
• ethical considerations in relation to the recording and reporting of financial information, and business decision-making.
• the effects of transactions on the accounting reports
  5
• the distinction between cash and profit
  4
• ethical considerations in relation to the recording and reporting of financial information, and business decision-making.
  1

Business owners must plan for future activities if they are to successfully manage the business. Preparing budgeted accounting reports provides the owner with information that will assist in managing and developing strategies to improve business performance. Students prepare and analyse budgeted accounting reports, both manually and using ICT, and suggest strategies to improve the performance of the business. They also discuss and evaluate the ethical considerations associated with business decision-making and business improvement.

• the accounting assumptions and qualitative characteristics
• the accounting assumptions and qualitative characteristics
• indicators and other relevant information (financial and non-financial) used to measure business performance
• indicators and other relevant information (financial and non-financial) used to measure business performance
  11
• Budgeted Cash Flow Statement
• the characteristics and use of classified budgeted accounting reports:
  5
• Budgeted Income Statement
• Budgeted Cash Flow Statement
  14
• Budgeted Balance Sheet
• Budgeted Income Statement
  3
• the use of variance reports and trends for Cash Flow Statements and Income Statements
• Budgeted Balance Sheet
• the distinction between cash and profit
• the use of variance reports and trends for Cash Flow Statements and Income Statements
  4
• the analysis of historical and budgeted accounting reports, including a consideration of the limitations of analysis, to develop strategies to improve business performance
• the distinction between cash and profit
  3
• graphical representations related to preparing and interpreting budgeted accounting reports
• the analysis of historical and budgeted accounting reports, including a consideration of the limitations of analysis, to develop strategies to improve business performance
  16
• strategies to improve business performance
• graphical representations related to preparing and interpreting budgeted accounting reports
  2
• ethical considerations in relation to business decision-making and the strategies used to improve business performance.
• strategies to improve business performance
  3
• ethical considerations in relation to business decision-making and the strategies used to improve business performance.