12ACC

NCEA Level 2 Accounting

Course Description

Teacher in Charge: Mr R. Hughes

Accounting at Level 2 looks in detail at two subsystems within a trading business, including recording, documentation, internal controls and processing through ledger accounts. Commercial software is used and students will also prepare and analyse final accounts in terms of profitability, financial stability and management effectiveness. Anyone aspiring to a position of responsibility in any field will benefit from an understanding of accounting subsystems for budgeting, accountability and control as well as understanding final accounting reports as investors, employees or other interested parties.

Accounting concepts for a sole proprietor

A study of users and their uses of accounting reports, and the qualitative characteristics, notions and assumptions underpinning those reports

Accounting Processing

Using commercial accounting software, the setting up and operation of a computerised accounting system

Accounting for subsystems of a trading firm

An in-depth accounting study of Inventory and Accounts Receivable

Note: this covers two Achievement Standards. Students are only required to complete one, but may chose to do both.

Preparing financial reports

Completing balance day adjustments and preparing an Income Statement, Balance Sheet, and Cashflow Statement.

Interpreting accounting information

Calculating analysis measures, describing trends, identifying links and making recommendations



Course Overview

Term 1
Inventory Subsystem – overview
Valuation methods, Stock cards, ledgers
Documentation
Internal controls
Accounts Receivable Subsystem - overview
Processing, subsidiary ledgers
Aged Debtors report
Documentation
Internal controls
Working capital cycle

Term 2
Computer accounting – setting up
Importing files
Processing frequent transactions
Processing infrequent transactions
Processing complex transactions
In-class assessment - Xero Accounting software
Financial Reports - adjustments
Closing entries and Depreciation

Term 3
Income Statement and Balance Sheet
Notes – Property, Plant and Equipment
Statement of Cash Flows
Accounting Concepts – uses and limitations
Concepts and assumptions / Qualitative characteristics
Elements and recognition criteria
Applying concepts

Term 4
Interpretation of Reports – analysis measures, ratios and trends
Profitability, effectiveness measures, liquidity, financial stability
Identifying links / Making recommendations

Contributions and Equipment/Stationery

Journal and Ledger refill, device

Recommended Prior Learning

10 credits in Level 1 Accounting. Students with less than 10 credits will be considered if they have AS 1.3.

Pathway

For students not progressing beyond Level 2, this course provides a good background for any career, since understanding accounting systems and controls will be part of any management position. Students who go on to become accounting technicians or chartered accountants will find opportunities in business, government departments, banking as well as in accountancy firms. There are many branches of accounting to specialise in later, such as financial accounting, management accounting, cost accounting, tax accounting, project accounting, forensic accounting, international accounting, government accounting.

Credit Information

Total Credits Available: 23 credits.
Externally Assessed Credits: 13 credits.
Internally Assessed Credits: 10 credits.

Assessment
Description
Level
Internal or
External
Credits
L1 Literacy Credits
UE Literacy Credits
Numeracy Credits
A.S. 91174 v2
NZQA Info
Accounting 2.1 - Demonstrate understanding of accounting concepts for an entity that operates accounting subsystems
Level: 2
Internal or External: External
Credits: 4
Level 1 Literacy Credits: Y
University Entrance Literacy Credits: 0
Numeracy Credits: 0
A.S. 91175 v2
NZQA Info
Accounting 2.2 - Demonstrate understanding of accounting processing using accounting software
Level: 2
Internal or External: Internal
Credits: 4
Level 1 Literacy Credits: 0
University Entrance Literacy Credits: 0
Numeracy Credits: Y
A.S. 91176 v2
NZQA Info
Accounting 2.3 - Prepare financial information for an entity that operates accounting subsystems
Level: 2
Internal or External: External
Credits: 5
Level 1 Literacy Credits: 0
University Entrance Literacy Credits: 0
Numeracy Credits: Y
A.S. 91177 v2
NZQA Info
Accounting 2.4 - Interpret accounting information for entities that operate accounting subsystems
Level: 2
Internal or External: External
Credits: 4
Level 1 Literacy Credits: Y
University Entrance Literacy Credits: 0
Numeracy Credits: Y
A.S. 91179 v2
NZQA Info
Accounting 2.6 - Demonstrate understanding of an accounts receivable subsystem for an entity
Level: 2
Internal or External: Internal
Credits: 3
Level 1 Literacy Credits: Y
University Entrance Literacy Credits: 0
Numeracy Credits: Y
A.S. 91386 v2
NZQA Info
Accounting 2.7 - Demonstrate understanding of an inventory subsystem for an entity
Level: 2
Internal or External: Internal
Credits: 3
Level 1 Literacy Credits: Y
University Entrance Literacy Credits: 0
Numeracy Credits: Y
Credit Summary
Total Credits: 23
Total Level 1 Literacy Credits: 14
Total University Entrance Literacy Credits: 0
TotalNumeracy Credits: 19

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