Accounting 3

ACC3
Course Description

Teacher in Charge: Ms A. Scholes

Prerequisites

If you did not take a pathway course at Level 2, or achieved fewer than 14 credits in that course, you will need HOD approval.


Accounting is the study of how we communicate financial information to businesses/organisations to help their decision-making.

  • This course will promote knowledge and understanding of Accounting as a financial language for partnerships and companies, which may be service, trading or manufacturing businesses.
  • Provides a foundation for any commercial study at a tertiary level – (BCom, BMS, BFin)
  • One external and all three internals must be completed to use this course for UE.


FAQ

Q.  What is the difference between Accounting and Economics?

Even though they are both “businessy” subjects, they are completely different. 

Decision making in business can be assisted using financial information. 

Accounting helps us to understand financial information and make important decisions like improving profitability or investment decisions. Topics include; Xero, Cashflow, Spreadsheeting, Forecasting, Financial Documents and of course Financial Statements.

Economics is more about the environment that our business operates in. Studying this subject helps you to understand how the markets work that you sell your product to, and how the economy around you impacts your business. 

Q. Can I do both?

Yes. If you have space in your timetable, students find that they complement each other really well and are completely different to each other. None of the achievement standards overlap.

Q. Can I move between subjects over 3 years?

Yes, they can be picked up at any stage, if you are dedicated enough to catch up on the content from the previous years.

Q. Where does it lead to?

Both subjects operate in the context of the “real world” and are highly relevant to what is actually happening “out there”.

Many Year 13 students that go on to tertiary study, study a Business/Commerce degree. These require both Economics and Accounting in the first year, thus the student is well positioned to move to the tertiary level content.

For those that don’t carry on to tertiary study, the learning and knowledge about the way in which the economy/business works and how both individuals and organisations can make good financial decisions is invaluable. As are the practical skills developed in both courses.

Q. Why accelerate study of Economics?

Students that have completed the Accelerate Business Studies course in Year 10 are able to enter the Level 2 Economics course in Year 11 and the Level 3 Economics course in Year 12. This allows them to study the University of Waikato Economics course in Year 13. This will cross-credit to a university commerce degree.

Q. Are Accounting and Economics becoming redundant with the improvement of software to complete many jobs previously completed manually?

No. While software may complete many jobs more quickly and accurately than in the past, this has shifted the work of accountants and economists into consulting and advocate roles where a deeper understanding of the underlying concepts is essential. Sound commerce advice will always be in need.


Course Overview

Term 1
Partnerships (4 credits, int)
Demonstrate an understanding of accounting for Partnerships.
- the formation of an accounting entity with two or more owners.

Job Costing (4 credits, int)
Demonstrate understanding of a Job Cost Subsystem for an entity.
- the process of calculating the cost of manufacturing a product and arriving at a price for the customer.

Term 2
Investor Report (5 credits, int)
Prepare a report for an external user that interprets the annual report of a New Zealand reporting entity.
- analysing the key information related to a publicly listed company and drawing conclusions to provide advice to a potential investor.

Decision-making (4 credits, ext)
Demonstrate understanding of management accounting to inform decision making.

Term 3
Financial Statements (5 credits, ext)
Demonstrate understanding of company Financial Statement preparation.
- this is the first insight into accounting for large companies that have shareholders.

Term 4
Preparing for the exam.

Learning Areas:

Commerce