Advice for teachers -Accounting

Unit 4 - Area of Study 2: Budgeting and decision-making

Outcome 2

Prepare budgeted accounting reports and variance reports for a trading business using financial and other relevant information, and model, analyse and discuss the effect of alternative strategies on the performance of a business.

Examples of lear​ning activities

  • Construct an annotated diagram depicting the budgeting process.
  • Discuss the difference between cash and profit. Prepare a table highlighting:
    • Cash inflows that are not revenues
    • Cash outflows that are not expenses
    • Revenues that are not cash inflows
    • Expenses that are not cash outflows.
  • Discuss how some items may fall into two categories but appear as different amounts:
    • Revenue/Cash Receipts
    • Expense/Cash Payment items
  • Complete a reconstruction of general ledger accounts to find amounts for the inclusion of budgeted reports.
  • Using a list of titles for all possible entries in the key ledger accounts (Accounts Receivable, Accounts Payable, Inventory, GST Clearing), compile a set of ledger templates using these titles. The titles can be written on post-it notes or laminated strips so they can be easily moved about.
See Detailed example (docx - 61.39kb)