Level 2 Accounting

ACCOUNTING - YEAR 12
NCEA LEVEL 2
CODE: 12ACC
Accounting can be studied up to Level 3 (Year 13). It may be picked up for the first time at Level 2 provided students have Level 1 Literacy and Numeracy.

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.

Topics covered include

Accounting concepts for a sole proprietor

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

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