Annex: skills in accounting

In relation to the knowledge and understanding outlined in the subject content for A-level Accounting, students need to have acquired competence in the following skills:

  • record transactions using double entry bookkeeping, verify the accuracy of the bookkeeping and correct any errors
  • prepare financial statements for sole traders and limited companies, including recording adjustments, by applying knowledge of accounting concepts
  • calculate and interpret accounting ratios
  • analyse and evaluate business performance using accounting techniques to interpret financial information
  • develop a logical and methodical approach to problem solving through the analysis and evaluation of financial and management information
  • prepare, analyse and evaluate budgets including the calculation and interpretation of variances
  • prepare information using costing techniques to enable managers to make decisions
  • present and communicate accounting information, numerically, graphically and in written form, so that it can be understood by non-accountants and can be used by stakeholders for decision making purposes
  • analyse and evaluate projects through the application of capital investment appraisal measures
  • prepare financial statements for businesses with incomplete records
  • prepare financial statements for partnerships
  • prepare information to enable managers to plan, control and make decisions using a range of accounting techniques such as: absorption costing, activity based costing and standard costing
  • evaluate the benefits and limitations of management accounting systems and techniques in providing information to enable managers to plan, control and make decisions
  • prepare statements of cash flow
  • evaluate the benefits and limitations of financial reporting in communicating information to a range of stakeholders to enable them to reach informed opinions about the organisation
  • analyse situations to identify ethical considerations and suggest appropriate actions.

These skills may be assessed across the assessment objectives.