Accounting - NCEA Level 2
Teacher in Charge: Mrs M. Atkinson
'Accounting was the course that helped me more than anything', Julian Robertson, billionaire and financial provider to many charitable organisations.
Students who take Accounting will gain knowledge and skills that will be very useful should they become business owners or investors. It is also a pathway into becoming future managers and global leaders in business.
Throughout the year you will develop your understanding of Accounting through the preparation and interpretation of financial statements for small business owners. There will be an introduction to using Xero Accounting software for processing everyday business transactions for a small business.
A partnership is defined as a group of persons carrying on a business with a view to making a profit. During this term you will learn the reasons for forming business partnerships and explore the financial areas that may result in future conflict for the partners. Of particular importance is the contribution each partner makes to the start-up costs of the partnership and then the way in which profits will be distributed to each partner is rewarded according to their effort, expertise and capital contribution.
You will complete practical tasks involving the formation and profit distribution to partners, plus explaining the entries involved to your client who has little or no knowledge of the importance of good financial management to ensure that the partnership continues to operate in the future.
In the future when you are an awesome entrepreneur you will need to understand your financial situation – in other words be able to keep track of your income, expenses and view the profit you have made. To do this you will use XERO accounting software.
“Xero is the emerging global leader of online accounting software that connects small businesses to their advisors and other services. Xero provides business owners with real-time visibility of their financial position and performance in a way that’s simple, smart and secure.”
Our unit of work is designed in such a way that by using the video instructions alongside the tasks you will be able to work independently at your own pace. When you want to go ahead at your pace you can, when you want to review a tricky transaction - you can! The tasks and videos can be accessed through any device 24/7.
During this term you will prepare financial statements for sole proprietor businesses. Through preparing an Income Statement you will be able to calculate the profit of the business for the year. Following this statement you will prepare a Statement of Financial Position which sets out the Assets, Liabilities and Equity sections for the business owner. Our unit of work is designed in such a way that by using the notes and examples provided alongside the tasks you will be able to work independently at your own pace. When you want to go ahead at your pace you can, when you want to review a tricky section of work - you can! Alongside the in class teaching and learning for this topic is a digital version that can be accessed through any device 24/7. This has the added advantage of giving you instant feedback on how you are progressing and is a great tool for increasing your confidence.
The purpose of analysis and interpretation is to tell the story behind the numbers in the financial statements of the business. As you work through this unit of work you should always think about ‘what is the story?’ I am telling here. The owner of the business is usually the audience for your story. Your story will explain and justify both the good and not so good financial things that have happened over the past year(s). Often the good and not so good financial things are explained and justified by non-financial happenings in the business.
The best stories have:
• a character, in this case the business and its owner;
• a series of interesting events, what the business has been doing over the last year(s); and
• a conclusion justifying the impact of the events related to the business on the business and/or the owner.
Recommended Prior Learning
Learning: Have achieved numeracy and literacy from Level 1.
This course is eligible for subject endorsement.
Total Credits Available: 16 credits.
Externally Assessed Credits: 9 credits.
Internally Assessed Credits: 7 credits.
Term: 2, Week: 10
Further assessment opportunities will not be offered for this standard inline with NZQA guidelines