NCEA Level 2 Accounting
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
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
Inventory Subsystem – overview
Valuation methods, Stock cards, ledgers
Accounts Receivable Subsystem - overview
Processing, subsidiary ledgers
Aged Debtors report
Working capital cycle
Computer accounting – setting up
Processing frequent transactions
Processing infrequent transactions
Processing complex transactions
In-class assessment - Xero Accounting software
Financial Reports - adjustments
Closing entries and Depreciation
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
Interpretation of Reports – analysis measures, ratios and trends
Profitability, effectiveness measures, liquidity, financial stability
Identifying links / Making recommendations
Recommended Prior Learning
10 credits in Level 1 Accounting. Students with less than 10 credits will be considered if they have AS 1.3.
Contributions and Equipment/Stationery
Journal and Ledger refill, device
Total Credits Available: 23 credits.
Externally Assessed Credits: 13 credits.
Internally Assessed Credits: 10 credits.
Accountant, Auditor, Accounts Officer, Actuary, Finance Manager, Retail Manager, Bank Worker, Hotel/Motel Manager, Farmer/Farm Manager, Debt Collector, Property Manager, Building Contractor, Buyer, Cafe/Restaurant Manager, Motor Vehicle Salesperson, Insurance Claims Officer, Community Worker, Event Manager, Quantity Surveyor, Dairy Farmer, Personal Assistant, Media Producer, Financial Adviser, Health Services Manager, Insurance Agent, Mortgage Broker, Office Manager, Payroll Officer, Purchasing/Supply Officer, Real Estate Agent, Management Consultant,