Accounting is a key function in all organisations. Effective accounting procedures can provide timely and relevant information to management, helping organisations perform successfully.
Studying Accounting will enable you to acquire the skills and knowledge necessary for understanding and taking part in the world of business. Even if you are not planning a career in accounting, this subject helps to improve your personal effectiveness by developing your ability to think logically, work accurately, make decisions and solve problems.
The skills that you develop in Accounting are useful in many careers such as finance, IT consulting, tax planning and management consulting.
National 5
National 5 Accounting has a large practical component. You will learn how to prepare and present a range of accounting statements and analyse information to make decisions. You can then apply your skills in an assignment that communicates financial information to people who are interested in an organisation’s performance.
Course Units
The course comprises two areas of study.
Financial accounting
You will develop skills, knowledge and understanding to prepare, interpret and analyse financial accounting information by using the relevant accounting concepts and techniques. This information is used by stakeholders to assess their organisation’s current financial position.
You will learn:
- what a Sole Trader is
- the duties, scope and responsibilities of the financial accountant
- how to prepare business documents, such as invoices, credit notes and statements of account, including VAT calculations
- how to prepare ledger accounts, trial balances, and financial statements in line with current accounting practice
- correction of errors, and calculating and interpreting ratios
- sources of finance for a sole trader.
Management accounting
You will develop skills, knowledge and understanding of internal accounting information, and be able to prepare this using a range of basic accounting techniques. This information is used by management when making decisions about the future planning and control of their business.
You will learn:
- the duties, scope and responsibilities of the management accountant
- costing theory: fixed, variable, direct and indirect costs
- calculating inventory values using first in, first out (FIFO), and last in first out (LIFO)
- labour costing: recording and calculating wages, and overtime and bonuses
- how to produce overhead analysis statements
- break even: calculation and analysis
- budgeting, and decision making
- how to use formulae when completing spreadsheets.
Assessment
The course assessment has two components totalling 180 marks:
- Component 1: question paper – worth 130 marks (consisting of two sections, section 1 worth 70 marks, and section 2 worth 60 marks
- Component 2: assignment – worth 50 marks.
For the assignment component, you will be asked to complete a series of tasks to prepare accounting information and financial statement, making appropriate use of spreadsheets. You may be required to use this information to aid decision making, analyse the organisation’s financial position or make recommendations for the future.
Progression
If you are successful in passing National 5 Accounting, there is the potential to progress to Higher Accounting.
Many college and university courses in management related subjects often require students to undertake an accounting unit in their first or second year and the skills and knowledge gained in National 5 Accounting will stand any pupil in good stead.
There are many careers which hold accounting skills in high regard and those looking for a career in Accountancy, Administration and Management, Finance, purchasing or sales will benefit from the knowledge obtained during the course.
