Unit 3 - Area of Study 2: Preparing and interpreting accounting reports

Outcome 2

Record transactions and prepare, interpret and analyse accounting reports for a trading business.

Examples of lear​ning activities

• On a table constructed (using ICT) to depict examples of the different documents used when recording transactions and preparing, interpreting and analysing accounting reports, identify each document and explain the transaction involved.
• Record the source documents provided into general ledger accounts.
• Become familiar with the rules of balancing assets, liabilities and owner’s equity ledger accounts; then practise using these rules with a set of general ledger accounts.
• Using magnetised items from a cash flow statement prepared by the teacher, restructure these on the board into a classified report, showing Operating, Investing and Financing Activities.
• Using a completed Income Statement prepared by the teacher, use Excel to produce graphs demonstrating the breakdown of Gross Profit to Adjusted Gross Profit and Net profit.
• Analyse accounting reports for a business, taking into account relevant ethical considerations.