Accounting (National 5) CPD Presentation

Preparing Financial Accounting Information (National 5) (National 5)1 Preparing Financial Accounting Information (National 5) (National 5)1.1 - COLLECTING REVELANT ACCOUNTING DATA FROM BUSINESS DOCUMENTS THAT COVER A RANGE OF TRANSACTIONS Assessment Standard 1.1 - Collecting relevant accounting data from business documents that cover a range of transactions For assessment purposes candidates are not expected to complete business documents eg (copy) invoice, (copy) credit note, cheque counterfoil, cheque, (copy) receipt. Centres should bear this in mind when creating assessments.

Preparing Financial Accounting Information (National 5) Assessment Standard 1.2 – Recording transactions in ledger accounts using double entry. Consequentiality must be applied. Where a candidate incorrectly identifies the document, an initial error is made. Subsequent entries based on this error are consequential and should not be penalised. In particular, when assessing candidate evidence centres should note that the entry for VAT is consequential to the candidate correctly identifying the transaction as a sale/purchase/return. The debtor/creditor account is also consequential to this.

Preparing Financial Accounting Information (National 5) Assessment Standard 1.3 – Preparing a trial balance from available ledger account balances Consequentiality should be applied with regard to final totals. Where candidates have incorrectly entered an account balance this should be treated as one error, however the impact on the total is consequential and should not be penalised again.

Preparing Financial Accounting Information (National 5) Assessment Standard 2.1 - Explaining why businesses need to account for period-end adjustments Candidates should only be deemed to have achieved this Assessment Standard where a clear understanding of the accruals/matching concept has been demonstrated.

Preparing Financial Accounting Information (National 5) Assessment Standard 2.2 – Calculating period-end adjustments from accounting data provided Pupils must clearly detail adjustments being made i.e. show working notes. Results of achievement should be clearly indicated on pupil evidence.

Preparing Financial Accounting Information (National 5) Assessment Standard 2.3 - Describing the effect of period-end adjustments on net profit and the balance sheet Refer to the Unit Assessment Support Packs on SQA’s secure website for the characteristics of answers that demonstrate achievement of this Assessment Standard.

Preparing Financial Accounting Information (National 5) Outcome 3 Prepare period-end financial accounting statements that show net profit and net worth The headings/labels expected are detailed in the Judging Evidence Table of the Unit Assessment Support Pack in the Commentary on Assessment Judgements column.

Preparing Management Accounting Information 1 Preparing Management Accounting Information 1.1 - COLLECTING REVELANT ACCOUNTING DATA FROM BUSINESS DOCUMENTS THAT COVER A RANGE OF TRANSACTIONS Outcome 1.1 - Describing direct and indirect costs and classifying the elements of these costs Candidate answer must indicate that direct costs are clearly linked to product/service and that no link to production of individual unit is possible for indirect costs. Encourage candidate to use examples from classification part of question to solidify answer.

Preparing Management Accounting Information (National 5) Assessment Standard 1.2 – Describing fixed and variable costs and classifying them in order to aid break-even analysis Encourage candidates to use examples from the classification part of the task to solidify answer.

Preparing Management Accounting Information (National 5) Assessment Standard 1.3 – Defining a cash budget and outlining why is it prepared Candidates must make sure that they clearly define the term ‘cash budget’. Candidates must ensure that they have clearly stated its purpose.

Preparing Management Accounting Information (National 5) Assessment Standard 1.3 – Preparing accounting statements from a given range Candidates are required to prepare 2 statements from Job Costing, Stock Valuation and Overhead Analysis. Where candidates meet the Assessment Standard in one statement and not the other, re-assessment is only required in the statement where the standard was not met.

Preparing Management Accounting Information (National 5) Assessment Standard 2.2 Calculating break-even information Assessment Standard 2.3 – Preparing a cash budget from given data for a specified Accounting period

Analysing Accounting Information (National 5) (National 1 Analysing Accounting Information (National 5) (National 1.1 - COLLECTING REVELANT ACCOUNTING DATA FROM BUSINESS DOCUMENTS THAT COVER A RANGE OF TRANSACTIONS Assessment Standard 1.1 Calculating and assessing the effect of a change in costs and selling price on break-even point and profit All working should be clearly shown.

Analysing Accounting Information (National 5) Assessment Standard 1.2 Calculating and assessing the impact that a limiting factor has on profit maximisation Assessment Standard 1.3 Interpreting a cash budget and outlining possible courses of action

Analysing Accounting Information (National 5) Assessment Standard 2.1 Calculating accounting ratios that assess the profitability, liquidity and efficiency of an organisation Assessment Standard 2.2 Comparing ratios based on given yardsticks of comparison to evaluate and report on the organisation’s performance

General Comments   It is expected that candidate evidence submitted for each outcome clearly indicates whether the candidate has achieved/not achieved the Assessment Standard. Whilst it is acceptable for assessments to be completed using spreadsheets, for assessments to be meaningful templates should not be provided. The inclusion of a formulae printout is not required.

WWW.sqa.org.uk│0303 333 0330