It is highly recommended that students intending to undertake this subject in Unit 3 & 4, should have successfully completed and passed Accounting Unit 2 prior.
Unit 3: Recording and reporting for trading business
This unit focuses on financial accounting for a single activity trading business as operated by a sole trader and emphasises the role of accounting as an information system. Students use the double entry system of recording financial data and prepare reports using the accrual basis of accounting. The perpetual method of stock recording with the First In, First Out (FIFO) method is used.
Unit 4: Control and analysis of business performance
This unit provides an extension of the recording and reporting processes from Unit 3 and the use of financial and non-financial information in assisting management in the decision-making process. The unit I based on the double entry accounting system and the accrual method of reporting for a single activity trading business using the perpetual inventory recording system.