Accounting

Unit 1:

The Role of Accounting in Business 

The unit explores the establishment of a business and the role of accounting in the determination of business success or failure, considering the importance of accounting information for stakeholders. Students analyse, interpret and evaluate the performance of the business using financial and non-financial information, using these evaluations to make recommendations regarding the suitability of a business as an investment. Students will record financial data and prepare reports for service businesses owned by sole proprietors. They will also take into account the ethical considerations, including financial, social and environmental considerations, faced by business owners when making business decisions.

Unit 2:

Accounting & Decision-Making for a Trading Business

This unit develops students’ 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 using relevant financial and other information to predict, budget and compare the potential effects of alternative strategies on the performance of the business. Using these evaluations, students develop and suggest to the owner strategies to improve business performance.

Unit 3:

Financial Accounting for a Trading Business 

This unit focuses on financial accounting for a trading business owned by a sole proprietor, highlighting the role of accounting as an information system. Students use the double entry system of recording 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, plus considering 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.

Unit 4:

Recording, Reporting, Budgeting and Decision-Making 

Students extend their understanding of the recording and reporting processes, with the inclusion of balance day adjustments and alternative depreciation methods. They investigate both the role and the 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. Using these evaluations, students will suggest strategies to business owners to improve business performance, also taking into account the ethical considerations faced by business owners when making business decisions.

Unit 3 and 4 Assessment breakdown


Unit 3 School-assessed Coursework   25%

Unit 4 School-assessed Coursework   25%

End-of-year examination                        50%