te matāuranga mahi kaute accounting AC2000CA COURSE AND ASSESSMENT GUIDE NCEA LEVEL 2

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1 te matāuranga mahi kaute accounting AC2000CA COURSE AND ASSESSMENT GUIDE NCEA LEVEL

2 accounting ac2000 teacher contact details When you first make contact with your teacher, please fill out their details below, for future reference. teacher s name: telephone: ext: alternative telephone number: address: Private Bag 39992, Wellington Mail Centre, Lower Hutt 5045 Please keep your Accounting (AC2000) Course and assessment guide in a safe place so that you can use it to plan your study and to record your assessment results. For future information about courses at this level, please refer to Student Guide to Years and the Student Guide to National Certificates, both are available on the school website ( Cover images: Money bags chalk drawing, istockphoto Charts and graphs, istockphoto Copyright 2012 Board of Trustees of Te Aho o Te Kura Pounamu, Private Bag 39992, Wellington Mail Centre, Lower Hutt 5045, New Zealand. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without the written permission of Te Aho o Te Kura Pounamu. te aho o te kura pounamu

3 contents 1 Welcome to AC Getting started information 3 AC2000 course outline 4 Assessment summary 5 Additional course materials 6 Assessment information 7 Suggested course plan 9 My Accounting assessment record (AC2000) te aho o te kura pounamu AC2000CA 1

4 1 welcome to ac2000 Welcome to the Level 2 Accounting (AC2000) course offered by Te Aho o Te Kura Pounamu. overview of ac2000 In this course you will develop your understanding of the role of accounting in society as a financial language for businesses, in particular sole traders. You will gain knowledge of the principles, processes and systems of accounting. You will learn to apply financial knowledge and skills to practical situations and communicate information using reports. This NCEA Level 2 course consists of seven Achievement Standards which will enable you to: explain the nature, characteristics and elements of accounting demonstrate accounting processes for subsystems prepare accounting records both manually and by using accounting software present financial statements including balance day adjustments analyse and interpret financial statements make a decision for a topical accounting issue. The following Key Competencies are covered in the level 2 Accounting booklets: thinking using language, symbols and text managing self relating to others participating and contributing. course credits The Level 2 Accounting Course offers 27 credits towards the Level 2 National Certificate in Educational Achievement (NCEA) and is covered in nine booklets. There are four internal assessments worth 14 credits and three external assessments worth 13 credits. At the end of Term 3 Te Kura offers a school exam which provides valuable practice for the external exams in November. course endorsement information This course can be endorsed with Merit or Excellence if in a single year you gain 14 or more credits at Merit and/or Excellence within Level 2 Accounting. At least three of these credits must be from externally assessed standards and three from internally assessed standards. further assessment opportunities There are no further assessment opportunities offered in Level 2 Accounting. 2 AC2000CA te aho o te kura pounamu

5 2 getting started information how this course is delivered AC2000 is a print-based course, with course material and supplementary material accessed from the online teaching and learning environment (OTLE). Dual enrolled students are expected to access material from OTLE. Other enrolled students may request printed materials to be posted, accepting there will be a delay between enrolment and receiving the first posting. You will receive an explaining how to log in to OTLE. This includes a link to set your password if you have not logged into the OTLE before. You can access OTLE by clicking on It is recommended that you bookmark this site in your browser. This will take you to a page with links to your courses. Your username and initial password is your Te Kura student ID number. You will be asked to set a new password when you first log in. After that, if you need to reset your password you can click on the Forgot password link on the OTLE login page. If you have difficulties logging in, please organising your study Plan a regular time to study. Some people learn best from frequent short sessions while others do better with fewer, longer sessions. It is important to have a plan or a timetable and to keep to it. There is a suggested planner in the back of this guide for you to plan your programme of study. You may wish to consult with your subject teacher to help you decide on your plan. Getting your study underway is very important. Your first return of work should be two to three weeks after you first received your initial work. If you have any issues returning your work within this time please contact your subject teacher. For more information on how to study successfully, refer to the Student Guide to Years ( te kura codes Your course code is: AC2000. AC is the code for Accounting and 2 refers to Level 2. AC2003 refers to a booklet that covers a particular learning topic in the AC2000 course. AC2003Y1 refers to the first assessment for an Achievement Standard (AS91386) in AC2003. AS is the code for Achievement Standard and US is the code for Unit Standard. Note: there are no unit standards available in the NCEA Level 2 Accounting course at Te Kura. resources you need Te Kura booklets calculator pen. te aho o te kura pounamu AC2000CA 3

6 getting started information choosing topics and standards NZQA advises that a one-year course should lead to credits. You may wish to do only some topics. For example, you may only want to do internal standards in this course (or only externals). You should look carefully at the course outline and make your choices. It is important to consider how well this will meet your learning goals (such as gaining enough credits to achieve your NCEA Level 2, or meeting the entry requirements for a tertiary course or any future study). You should discuss your options with your learning advisor and/or your teacher. self-marking Many assessment activities are self-marked. You ll find an Answer guide towards the back of each booklet. Use these answers to mark your own work and make corrections where necessary. Self-marking is very important as it gives you instant feedback on how well you understand the ideas, concepts or information that have been covered. assessment Students are required to send in their self-marked activities and teacher-assessed work. Teachers return student work with feedback and advice in preparation for NCEA internal and external assessments. ASSESSMENT TASKS s Your internal assessments (Y1s) will be sent once you have submitted the teacher-marked activities for: AC2003 (AS91386 Accounting 2.7) Processing financial records for an inventory subsystem AC2004 (AS91179 Accounting 2.6) Processing financial records for accounts receivable subsystem AC2009 (AS91175 Accounting 2.2) Using a software package called MYOB Externals The other Achievement Standards: AC2001 and AC2002 (AS91174 Accounting 2.1) Accounting concepts AC2005 and AC2006 (AS91176 Accounting 2.3) Preparing financial statements AC2007 and AC2008 (AS91177 Accounting 2.4) Interpreting financial information will be examined externally in November. External assessment preparation includes: practice external assessments Te Kura practice examinations. The detailed criteria for Achievement Standards will be given in the Reference guide. They can also be found by searching the subject and level in the NCEA part of the NZQA website ( and then finding the relevant standard(s). 4 AC2000CA te aho o te kura pounamu

7 getting started information time commitment There are nine booklets in this course. Each contains a note on the front cover indicating how many study hours the topic is likely to require. For example, booklet AC2001 may take 20 hours of work to complete at the normal pace, representing about four weeks of work at five hours per week. Before deciding on the pace of learning, read through this Course and assessment guide and ask yourself the following: How much time can I set aside for study each week? Will I be attempting externally and internally assessed standards? Will I be able to keep a steady pace of five hours of study each week? Do I intend to sit the external examination at the end of the year? Do I need specific external or internal credits for next year s study or work? normal pace of learning As a guide, expect to do at least five hours work per week in this subject. This means completing three to four booklets each term so that you complete the course before the external examinations at the end of the school year. flexible pace of learning If you have less than a year because you start later or need to finish earlier, you can decide the pace at which you work. You could still complete the whole course by devoting more time and effort to it. Your teacher can ensure that you receive the resources you need in time to do this. cover sheets Detach the back cover of the booklet; this becomes the cover sheet for your work. Fill it in, sign it and attach to the front of your work before sending it back to Te Kura. If applicable, your supervisor also signs this sheet as part of our authenticity requirements. All students are encouraged to submit as much as possible of their work on line via the OTLE Dropbox. When work requires authentication, students will follow the instructions provided in OTLE. queries about your work It is important to contact your teacher if you have any queries about your work. It helps to have your ID number, booklet code (for example, AC2002) and the activity or question number when you contact your teacher, but it is not essential. otle activities If you are looking for more practice or extension, log on to OTLE, where you will find material including tutorials, links to websites and practice activities. Extra material will be added throughout the year. te aho o te kura pounamu AC2000CA 5

8 3 ac2000 course outline Course item/ booklet Title Learning outcomes (if applicable) Standard AC2000CA Course and assessment guide N/A N/A AC2000R Reference guide N/A N/A AC2001 Accounting concepts 1 Explain and apply accounting concepts. Explain the financial elements. Explain the financial statements. AS91174 Demonstrate understanding of accounting concepts for an entity that operates accounting subsystems AC2002 Accounting concepts 2 Distinguish between capital and revenue transactions. Allocate the appropriate method of depreciation to property, plant and equipment. External 4 credits Explain the accounting process. AC2003 Inventory subsystem Identify and process source documents for the inventory and accounts payable subsystems. Value the cost of inventory using the perpetual inventory system. AS91386 Demonstrate understanding of an inventory subsystem for an entity Prepare individual cost cards for inventory. 3 credits Prepare General Journal entries for inventory transactions. Post the General Journal transactions to the General Ledger. Understand the internal controls for the inventory and accounts payable subsystems. 6 AC2000CA te aho o te kura pounamu

9 ac2000 course outline AC2004 Accounts receivable subsystem Explain objectives, inputs and outputs of the accounts receivable subsystem. Process financial information for an entity s accounts receivable subsystem. AS91179 Demonstrate understanding of an accounts receivable subsystem for an entity Justify elements of the accounts receivable subsystem. 3 credits AC2005 Prepare financial information 1 Record balance day adjustments in the General Journal. Post balance day adjustments from the General Journal. Prepare correctly classified financial statements. AS91176 Prepare financial information for an entity that operates accounting subsystems External AC2006 Prepare financial information 2 Prepare financial statements. Prepare closing entries at the end of the reporting period. 5 credits Prepare a cash flow statement. AC2007 Interpret accounting information Calculate and explain percentages and ratios from given data. Interpret and evaluate analysis measures. Make valid and justified recommendations. AS91177 Interpret accounting information for entities that operate accounting subsystems External AC2008 Interpret accounting information Calculate and explain percentages and ratios from given data. 4 credits Interpret and evaluate analysis measures. Make valid and justified recommendations. te aho o te kura pounamu AC2000CA 7

10 ac2000 course outline AC2009 Accounting processes MYOB Demonstrate an ability to create a business using MYOB computer software. Process transactions for the business. Print final reports and financial statements for the business. AS91175 Demonstrate understanding of accounting processing using accounting software 4 credits AC2010Y1 Decision making Make a financial decision for a topical accounting issue. AS91481 Demonstrate understanding of a topical accounting issue for decisionmaking 4 credits 8 AC2000CA te aho o te kura pounamu

11 4 assessment summary credits offered: 27 ncea level 2 accounting (ac2000) Standard number Standard title Study material (code) AS91174 Accounting 2.1 External 4 credits L AS91175 Accounting 2.2 Demonstrate understanding of accounting concepts for an entity that operates accounting subsystems Demonstrate understanding of accounting processing using accounting software AC2001 AC2002 AC credits N AS91176 Accounting 2.3 External 5 credits N AS91177 Accounting 2.4 External 4 credits L N AS91481 Accounting credits L AS91179 Accounting credits L N AS91386 Accounting credits L N Prepare financial information for an entity that operates accounting subsystems Interpret accounting information for entities that operate accounting subsystems Demonstrate understanding of a topical accounting issue for decision-making Demonstrate understanding of an accounts receivable subsystem for an entity Demonstrate understanding of an inventory subsystem for an entity AC2005 AC2006 AC2007 AC2008 AC2010Y1 AC2004 AC2003 There are no further assesment opportunities for AC2000. L are Literacy credits for NCEA Level 1 N are Numeracy credits for NCEA Level 1. te aho o te kura pounamu AC2000CA 9

12 5 additional course materials online resources Resources Description Website MYOB You will require appropriate software to complete AS SECONDARY SCHOOL STUDENTS MYOB computer software is free to the secondary sector. Coordinators in secondary schools can request it directly from MYOB. FULL-TIME AND ADULT STUDENTS Go to the website Click on Free Trial for Account Right Plus. Te Kura website information OTLE Supplementary material NZQA website Fill in the form and the download trial. OTLE additional resources A student help site with information on internal achievement criteria, subject content, and assessment practice. Achievement standards, examiner s reports, past exam papers, and solutions. nz/resources-foraligned-standards/ Social-sciences subjects 10 AC2000CA te aho o te kura pounamu

13 6 assessment information standards The National Qualifications Framework has two types of national standards: Achievement and Unit Standards. Credits from both Achievement Standards and Unit Standards count towards NCEA. Note: There are only Achievement Standards in Accounting. Please refer to our Student Guide to National Certificates or Te Kura ( and NZQA websites ( for more information about National Certificates of Educational Achievement, and assessment. internal assessment Unit Standards are no longer offered in Accounting. All assessment activities are based on Achievement Standards. Some Achievement Standards are internally assessed. This means that your teacher sets and marks your assessments that count towards credits gained for these standards. external assessment External assessment means that an external examiner marks your assessment work. This may be through NZQA examinations at the end of the year or (for subjects such as Graphics, Technology and Art) by submitting a portfolio or project. You will be able to complete practice assessments and Te Kura practice examinations for external standards. te kura practice examinations Students should complete the Te Kura practice examinations for any external standards with an end of year examination they have entered. It is important that students complete all practice external assessments and examinations. If for some reason, such as illness, you are unable to sit the examinations at the end of the year you will only be eligible for consideration for a derived grade (compassionate consideration) if you have completed the practice examinations. resubmissions If you have made mistakes in your standard assessment, your teacher may offer you a resubmission opportunity. This means you have made errors that you are capable of discovering and correcting by yourself. A resubmission allows you to improve your result. further assessment opportunities for internal assessments For some standards, you will be able to complete a second assessment called a further assessment opportunity to improve your results. These standards are indicated in the assessment summary. You should take this opportunity where it is available. te aho o te kura pounamu AC2000CA 11

14 assessment information authenticity Authenticity means that students complete and submit work that is their own. When you submit work to Te Kura, you sign an authentication declaration that the work you are submitting is your own work and was done under the required assessment conditions. Where applicable, your supervisor signs to confirm this declaration. When submitting work online via the OTLE Dropbox, if it requires authentication, students must follow the instructions provided in OTLE. derived grades (compassionate consideration) If for any unexpected reason you are not able to sit your end of year examination or to submit final work towards an external standard (portfolios or projects), you may be eligible for a derived grade. Please refer to the Student Guide to National Certificates and contact your teacher or learning advisor as soon as possible to find out more should you feel this is necessary. appeals You have the right to query an assessment result if you want further clarification or disagree with the result. If you are still not satisfied, you may appeal. Refer to the Student Guide to National Certificates for more information. You can also appeal any other decisions, procedures or policies about assessments. Contact your teacher or learning advisor if you wish to appeal. More information and a form that students can use to appeal is available on the Te Kura website in the Student toolkit area ( and go to Student toolkit). 12 AC2000CA te aho o te kura pounamu

15 7 suggested course plan Here is a suggested one-year plan. The suggestions are based on the assumption that you are going to be enrolled for a full-year course at the beginning of the school year, study all the content and attempt all the standards offered. However, you may enrol with Te Kura partway through the year and continue your studies the following year. You may choose to select only some of the topics and standards, depending on your circumstances. Feel free to discuss your individual programme with your subject teacher, who will be willing to adjust the programme to suit your needs. Term Suggested plan Time (approximately) 1 Read AC2000CA, the course and assessment planner and contact your teacher if you need help getting started. Look through the Reference guide and familiarise yourself with the Achievement Standards, Glossary and exam hints. AC2010Y1 Decision Making 1 day 1 2 days 2 3 weeks AC2009 MYOB 3 4 weeks AC2001 Concepts External 2 3 weeks 2 AC2002 Concepts External 3 weeks AC5005 Financial Statements External 3 weeks AC2006 Financial Statements External 3 4 weeks 3 AC2008 Interpret Information External 3 4 weeks AC2003 Inventory 3 4 weeks AC2004 Accounts receivable 3 4 weeks 4 Complete any unfinished booklets. 2 weeks Ensure all resubmissions have been sent in. 1 week Revise for externals and study the Reference guide 2 weeks thoroughly. The internal assessments can be left to later in the year to complete. It is advisable to complete the booklets leading to externals first so you can confidently sit the school exams in September. However, if you wish to complete the internally assessed achievement standards earlier in the year please contact your teacher. te aho o te kura pounamu AC2000CA 13

16 assessment information 14 AC2000CA te aho o te kura pounamu

17 8 my accounting assessment record (ac2000) Standard number Assessment details Exam/ Assessment due date Grade awarded Credits achieved AS91174 Accounting 2.1 External 4 credits Demonstrate understanding of accounting concepts for an entity that operates accounting subsystems November exam* AS91175 Accounting credits Demonstrate understanding of accounting processing using accounting software Suggested due date: Term 1 AS91176 Accounting 2.3 External 5 credits Prepare financial information for an entity that operates accounting subsystems November exam* AS91177 Accounting 2.4 External 4 credits Interpret accounting information for entities that operate accounting subsystems November exam* AS91481 Accounting credits Demonstrate understanding of a topical accounting issue for decision-making Suggested due date: Term 1 AS91179 Accounting credits Demonstrate understanding of an accounts receivable subsystem for an entity Suggested due date: Term 3/4 AS91386 Accounting credits Demonstrate understanding of an inventory subsystem for an entity Suggested due date: Term 3 * NZQA examination results available in January. te aho o te kura pounamu AC2000CA 15

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