Unit 1 - Area of Study 2: Recording financial data and reporting accounting information for a service business

Outcome 2

Identify and record financial data, report and explain accounting information for a service business, and suggest and apply appropriate financial and non-financial indicators to measure business performance.

Examples of lear​ning activities

• Collect a range of documents used by a business to record financial transactions. Examine these, identify, describe and analyse the key data contained in each.
• Design appropriate documents that could be used by a business as records of financial transactions.
• Record a range of financial transactions in the cash and credit journals for a business.
• Describe the two-fold effect of a range of financial transactions.
• Using a spreadsheet, record transactions in journals and prepare financial reports.
• Design and run a small service business (as a class activity). Record transactions, manage supplies and then evaluate business performance.
• Create and maintain a glossary of appropriate accounting terms. Include the accounting assumptions, qualitative characteristics and types of documents used to record financial transactions by a business. This could be displayed prominently in the classroom.
• Using a list of transactions, design appropriate documents and journals for a business and record these either manually or by using ICT.
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  Use a spreadsheet representing an Income Statement to model the effects of various business decisions on the accounting equation. Construct appropriate graphical representations of the data. Provide advice to the business owner about how the business is performing and areas of potential improvement.
• Complete a series of exercises using financial and non-financial data and indicators of business performance to evaluate business performance.
• Use a spreadsheet to prepare a cash flow statement and prepare appropriate graphs depicting indicators of business performance using data from the cash flow statement.
• Using the data provided in a spreadsheet for two businesses, design and prepare appropriate graphs. Compare the performance of the two businesses.
• Prepare a YouTube information clip about the Goods and Services Tax (GST). Explain what it is, how it works and how it is recorded within a business’ financial records.
• Use a spreadsheet to model how different strategies to improve business profitability might work. This should be based on a business scenario.
• Using provided financial reports, evaluate the performance of a business and provide appropriate advice to the business owner.
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  Use a case study to discuss the internal control procedures used to safeguard resources against theft and fraud. Discuss the ethical considerations a business owner should take into account when recording transactions.
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  Discuss the ethical considerations faced by business owners when recording and reporting transactions.