This unit focuses on the establishment of a small business and the accounting and financial management of the business. Students are introduced to the processes of gathering, recording, reporting and analysing financial data and information used by internal and external users. Recording and reporting is restricted to the cash basis.
Students examine the role of accounting in the decision-making process using single entry recording of financial data and information for the owner of a service business.
Where appropriate, the accounting procedures developed in each area of study should incorporate the application of accounting principles and the qualitative characteristics of accounting information.
AREA OF STUDY 1 - Going into business
AREA OF STUDY 2 - Recording and reporting accounting data and information