Business Studies. Business Studies Secondary Curriculum Statement

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1 Business Studies Business Studies Secondary Curriculum Statement 1

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3 Business Studies Years 9 11 with Accounting Years Economics Years SÄMOA SECONDARY SCHOOL CURRICULUM Curriculum Materials and Assessment Division Ministry of Education, Sports and Culture This curriculum statement was prepared by the Business Studies Subject Committee: Faapuea Afoa Fuarosa Ieru Rufo Maka Abraham Matthew Terisa Repuleai Honolina Smith Silika Ah Chong Teleuli Mafoa Monalisa S Malietoa Taefalaula Meleisea Lene Selulo Ene G Hosea was the CMAD Subject Adviser and Lili Tuioti the New Zealand Adviser. Funding provided by NZAID under the Sämoa Official Development Assistance Programme. Managing Contractor: Auckland UniServices Ltd. February 2004 Business Studies Secondary Curriculum Statement 3

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5 CONTENTS INTRODUCTION Curriculum Principles 7 Scope of the Curriculum Statement 7 Organisation 8 General Aim 8 Specific Aims 8 Structure of the Business Studies Curriculum 9 Approaches to Teaching and Learning 10 Language and Learning 11 Language Functions Across Subject Areas 10 Communication Skills 12 Language and Communication Achievement Objectives 12 Learning Programmes in Business Studies 13 Gender issues 13 Assessment and Evaluation 14 Effective Assessment 15 STRANDS, AIMS AND ACHIEVEMENT OBJECTIVES Strand 1: Accounting Applications 18 Strand 2: Financial Accounting 20 Strand 3: The Accounting Process 24 Strand 4: Production 32 Strand 5: Consumption 36 Strand 6: The Market 38 Strand 7: Communication - Oral 44 Strand 8: Communication - Written 46 BUSINESS STUDIES ACHIEVEMENT OBJECTIVES YEARS 9-11 Year 9 50 Year Year ACCOUNTING ACHIEVEMENT OBJECTIVES YEARS Year Year Business Studies Secondary Curriculum Statement 5

6 CONTENTS (CONT) ECONOMICS ACHIEVEMENT OBJECTIVES YEARS Year Year GLOSSARY Glossary 85 6 Business Studies Secondary Curriculum Statement

7 INTRODUCTION CURRICULUM PRINCIPLES This Business Studies curriculum is based on the Principles of the Sämoa Secondary School Curriculum stated in the Sämoan Secondary School Curriculum Overview Document. The Principles are that the curriculum: provides a challenge for all students, reflects the need to be inclusive and allows for individual differences; fosters and enhances the self-concept of all learners, and encourages them to be self-directed in their learning; provides all learners with a broad and balanced general education; will be based on what is best in Sämoan tradition: fa asämoa; will be responsive to change so that it is relevant to the needs of the individual learner, to the well-being of the community, and ultimately to national development; provides for flexibility taking into account the context in which schools operate and the resources available to them; establishes a direction for learning and ensures each learner s school experience progresses in a systematic and coherent way; promotes the presentation of essential knowledge by means of a systematic bilingual methodology; promotes language learning in all areas of the curriculum; encourages the use of good assessment practice. SCOPE OF THE CURRICULUM STATEMENT The National Curriculum is made up of: the Sämoa Secondary School Curriculum Overview document, which outlines the framework of underpinning principles and required learning areas; and a set of subject curriculum statements which define the learning principles and achievement aims and objectives which all Sämoan schools are required to follow. The Business Studies curriculum sets out progressions of skills and knowledge for students in secondary schools in Sämoa. This curriculum statement applies to: all secondary schools in Sämoa; all students irrespective of gender, ethnicity, belief, ability, social or cultural background; Years 9-13 of secondary schooling. Business Studies Secondary Curriculum Statement 7

8 Each school provides programmes of learning, which may be part, or all of the national curriculum in response to local needs, priorities, and resources. The Business Studies Curriculum Statement provides a basis for teachers to plan programmes for teaching Business Studies in secondary schools. The learning programmes developed by schools must provide the experiences and opportunities for students to achieve the standards that are included in the National Curriculum. ORGANISATION This Business Studies Curriculum Statement begins with Business Studies in Years 9 to 11 with specialisation in Economics and Accounting at Year 12. It provides information for teachers, students, parents, families and the wider community on what students are expected to be able to do in each year of secondary schooling. All national subject curriculum statements are organised to show the: 1. General Aim of the subject curriculum; 2. Organising Strands of the curriculum; 3. Specific Aims that organise the learning within the strands; 4. Achievement Objectives to be achieved at each year level. GENERAL AIM Business Studies aims to enable students to participate effectively in economic activities and cope with the complexities of modern financial resource management. Students will achieve this aim by developing knowledge and understandings about society as they study the seven Business Studies strands of: 1. Accounting Applications 2. Financial Accounting 3. The Accounting Process 4. Production 5. Consumption 6. The Market 7. Communication SPECIFIC AIMS Each strand has specific aims that develop the general aim of Business Studies. The specific aims of each strand establish a clear and structured progression of Achievement Objectives that span the years 9 11 for Business Studies and years 12 and 13 for Economics and Accounting. 8 Business Studies Secondary Curriculum Statement

9 STRUCTURE OF THE BUSINESS STUDIES CURRICULUM STRAND Specific Aim Specific Aim Achievement Objective Achievement Objective Year 9 Year 9 Year 13 Year 10 Year 10 Year 13 Year 12 Year 11 Year 11 Year 12 Knowledge Skills Attitudes Knowledge Skills Attitudes Knowledge Skills Attitudes Knowledge Skills Attitudes ECONOMICS BUSINESS STUDIES ESSENTIAL SKILLS BUSINESS STUDIES ACCOUNTING Business Studies Secondary Curriculum Statement 9

10 APPROACHES TO TEACHING AND LEARNING The National Curriculum is aimed at enabling students to learn. Learning is a process by which new understandings are constructed. Students learn best when they take action themselves to generate and create meaning, and to apply the new knowledge in meaningful situations. Teaching practices must aim for effective learning. Students are more likely to be engaged in effective learning if teachers use activities such as discussion, investigation and reflection, problem solving, and peer work. These types of activities help students to think more deeply about the content they are learning. LANGUAGE AND LEARNING The language associated with learning in subject areas is often abstract and demanding for any learner. Learning is even more complex for students who must learn through the medium of their second language English. They are required to develop their English language for school learning at the same time as learning the subject content. They are expected to use English to reason through to conclusions, read and understand expository texts, develop arguments, analyse, synthesise and evaluate ideas. Furthermore they are assessed in English on how well they express themselves either orally or in writing. Students who learn English as their second language may take at least 5 to 7 years to develop English language skills for academic learning compared to those students whose first language is English. LANGUAGE FUNCTIONS ACROSS SUBJECT AREAS Language functions refer to the purposes for which language is being used. For example, language can be used to express and respond to greetings, give reasons, give instructions, ask for help and so on. There are a number of language functions necessary for understanding content across the curriculum. A lot of language functions are common to all subjects. For example, whether students are learning about soil erosion in Agricultural Science, or food spoilage in Food and Textiles Technology, central to both topics is the concept of cause and effect, and the language function involved is Expressing Cause and Effect. The words and sentence structures used to express the same language function e.g., cause and effect, in different subjects will be the same. The table on the next page lists examples of language functions as required in the achievement objectives within and across the applied subject areas. 10 Business Studies Secondary Curriculum Statement

11 Language Agricultural Food and Business Design and Functions Science Textiles Studies Technology Defining Ì Ì Ì Ì Expressing cause and effect Ì Ì Ì Ì Classifying Ì Ì Ì Ì Describing Features Behaviours Properties Functions Roles Comparing and contrasting Ì Ì Ì Ì Ì Ì Ì Ì Giving reasons Ì Ì Ì Ì Giving instructions Asking questions as in interviews Ì Ì Ì Ì Ì Ì Ì Describing change Ì Ì Ì Ì Explain how: a natural process, a mechanical process etc. Ì Ì Ì Stating principles Ì Ì Expressing relative importance Making a judgement Explain why: e.g. a phenomenon Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Giving examples Ì Ì Ì Ì Expressing conclusions Expressing requirements Ì Ì Ì Ì Ì Ì Ì Predicting Ì Ì Ì Hypothesising Ì Ì Ì Business Studies Secondary Curriculum Statement 11

12 The curriculum statements require students to be able to understand and produce oral and written texts that are: descriptions; explanations; reports e.g., of field trips, experiments, investigations or research; summaries, recipes, design briefs, instructions, arguments. The production of these texts requires students to be able to use one or a number of language functions as outlined in the table on the previous page. For example, to produce an explanation of a process such as preparing a Trial Balance, students will need to be able to use language to define, express cause and effect, describe change and classify. All students must develop the language associated with learning in Business Studies. Teachers in all subject areas are teachers of language. In practice it requires Business Studies classroom programmes to have specific language objectives. The language that students will need in order to understand and talk about content, and to participate effectively in learning activities in Business Studies, should be identified and taught together with the appropriate content. In this way language is developed in relevant and meaningful contexts. COMMUNICATION SKILLS Communication skills are essential for all students to develop. Students need to be able to interpret and critically evaluate information that is received either by listening, reading or viewing. They also need to be able to communicate clearly, confidently, and appropriately through speaking and writing, and through other forms of communication and technologies. The development of these skills needs to be supported in all areas of the curriculum. Like language skills, communication skills required in the Achievement Objectives need to be identified and taught together with the appropriate content. LANGUAGE AND COMMUNICATION ACHIEVEMENT OBJECTIVES The language and communication Achievement Objectives highlighted in this curriculum statement are based on the types of texts students are required to understand and produce during a year s programme in Business Studies. Although the achievement objectives are subject related, they are linked to language and communication skills being developed through the Sämoan Language Curriculum and English Language Curriculum. They are highlighted here because in addition to language being developed during Sämoan and English classes, there is a very real need for subject teachers to give attention to the language requirements of their subjects. Guidelines for teaching the language of different types of texts are included in the teachers manuals. 12 Business Studies Secondary Curriculum Statement

13 The achievement objectives are organised under two broad strands: Oral Language Communication and Written Language Communication. The achievement objectives for each year level are determined by the content objectives of all the other strands. Students should achieve these objectives through the learning activities undertaken for the other strands in the year level. LEARNING PROGRAMMES IN BUSINESS STUDIES Learning programmes, therefore, should have these features: a planned integration of content and language learning in interesting contexts; the provision of opportunities for students to use language for both social and academic purposes; a balanced use of listening and speaking, reading and writing, viewing and presenting through a range of activities that promote learning and the skills of communication; focused instruction on language structures found in Business Studies from word forms and meanings to sentence patterns, to the way information or ideas are grouped and connected into longer texts; opportunities in learning activities for students to interact with others in both Sämoan and English; frequent opportunities for meaningful interaction between teachers and students; teachers providing good models of language use and a balanced use of Sämoan and English separately. GENDER ISSUES The Sämoa Secondary School Curriculum Overview document requires education to be gender-inclusive. This means that students should not be excluded from developing good self-esteem or from participating fully and successfully in learning because of narrow gender stereotypes. Materials used with this curriculum must give learners the opportunities to understand how men and women and girls and boys can have a wide range of occupations, tasks and responsibilities. Materials must also use gender-neutral language where possible. Business Studies Secondary Curriculum Statement 13

14 School programmes and classroom learning tasks should reflect the diversity of roles available to women and men and girls and boys. Teachers need to ensure that gender is not an obstacle to learning, success, or individual value. To ensure this Business Studies programmes will: include the interests, perspectives, and contributions of both females and males in programme content, resources and methods of teaching; ensure that both females and males take active and valued leadership roles in activities; ensure females and males have equitable access to resources (including teachers time), learning assistance and technological equipment. ASSESSMENT AND EVALUATION Assessment is the process of gathering meaningful information which is used to make judgements on aspects of the learning cycle such as learners performance against the achievement objectives and the quality and effectiveness of learning programmes. Assessment and evaluation of Business Studies teaching and learning must reflect the principles in the Sämoa Secondary School Curriculum Overview document. The National Curriculum recognises the relationship between the principles and purposes of the curriculum and methods of assessment. Assessment methods are an important factor in influencing and constraining teaching methods. The things that are assessed are seen as important. The way assessment is conducted emphasises the need to gain the skills that are assessed. Written examinations focus on the narrow range of knowledge and skills that can be assessed in written forms. The domination of assessment by pen and paper examinations legitimises the focus on a narrow range of skills and, as a result, confirms a range of teaching methods. It is important therefore that: a range of assessment procedures is used to provide useful information on students progress against the Achievement Objectives stated in the curriculum; skills and knowledge such as independent inquiry, oral language, and many practical skills are assessed. These are not easily assessed by examination and need assessment through school based activities; assessment and evaluation be ongoing and help improve the ways in which Business Studies programmes are meeting the students needs; where appropriate, families and communities be involved as participants in the assessment and evaluation process; students be involved in the assessment of their own progress in learning Business Studies. 14 Business Studies Secondary Curriculum Statement

15 EFFECTIVE ASSESSMENT Effective assessment in Business Studies seeks to: be valid, reliable and authentic; help students and teachers focus better on learning; engage students in worthwhile activities; be rewarding in terms of offering guidance about progress and skills; give feedback. Teachers evaluating their programmes can use information from assessment. Evaluation is used to judge the success or otherwise of a programme. It requires a teacher to judge what worked well, how well the teaching improved students learning, and what needs changing to improve the unit for next time. Teachers should involve colleagues and students in the process of evaluation, by asking them for their feedback on how well the teaching programme/unit met their learning needs. Business Studies Secondary Curriculum Statement 15

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17 STRANDS, AIMS AND ACHIEVEMENT OBJECTIVES PROGRESSION FOR YEARS 9 13 Business Studies Secondary Curriculum Statement 17

18 STRAND 1 ACCOUNTING APPLICATIONS AIM: From their study of ACCOUNTING APPLICATIONS in everyday life students will understand how accounting concepts and principles can be used in making decisions. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 1. How accounting serves their everyday life when they: Define the term Accounting and its purpose; Describe the relationship between accounting and economics; Identify various situations where a system of accounting would be useful in terms of managing and recording use of resources. 1. How to manage personal finances when they: Describe the different parts which make up a Personal / Family Budget; Prepare a budget for an individual and family; Identify the source documents which are evidence of income and expenditure items of a budget; (d) Utilise budgets to control and manage individual / family spending; (e) Prepare a Statement of Affairs for an individual. 1. Managing finances related to individual and family events when they: Classify the different expenditure relevant to different events which affect individuals living in Sämoa; Recognise and discuss the conflict between the principles of good financial management and values upon which decisions are made; Evaluate the benefits and costs of a non-financial nature which influence decisionmaking for such events; (d) Recognise and interpret different entries in a bank statement; (e) Reconcile bank statements with personal cheque records. 2. The role of accountants in society when they: Identify the role of accountants in the business sector; Investigate the areas of specialisation within accounting. 2. Methods of payment when they: Describe the function of cheques; Identify the different parts of a cheque and how to safe-guard against misuse or theft; Compare the advantages and disadvantages of using cash rather than cheques for payment of expenses; (d) Compare and contrast different methods used for payment of expenses such as EFTPOS, credit card; (e) Describe the features of electronic banking (ebank). 2. Establishing a small business in Sämoa when they: Describe different small business financing options such as small loans for businesses, micro-financing; Investigate the possibility of setting up a small business in a village, e.g. costs, sources of capital, availability of products; Prepare a business plan for a small business; (d) Establish a case for setting up a small business in an urban part of Sämoa. 18 Business Studies Secondary Curriculum Statement

19 STRAND 1 ACCOUNTING APPLICATIONS Year 12 Year The nature, purpose and functions of accounting: Identify and recall the purposes of different financial documents consumers use in everyday life; Identify ways to organise and store personal accounting documents; Recognise different areas of specialisation in Accounting as a career (1) ; (d) Identify users of accounting information; (e) Recognise the importance of non-financial information. 1. How accounting concepts and principles are applied by individuals and business and community organisations when they: Collect, interpret and analyse household source documents; Review the importance and relevance of accounting concepts (2) ; Identify and describe the qualitative characteristics of accounting information (3) ; (d) Determine tertiary education opportunities and qualifications available in the area of accounting in the Pacific region. (1). Cost accountant, management, taxation, auditing, financial accountant. (2). Accounting entity, monetary measurement, going concern, accounting period, matching, accrual basis, historical cost, materiality, prudence (conservatism), consistency, disclosure. (3). Relevance, reliability, understandability, comparability, timeliness, neutrality, verifiability, objectivity. Business Studies Secondary Curriculum Statement 19

20 STRAND 2 FINANCIAL ACCOUNTING AIM: From their study of FINANCIAL ACCOUNTING and reporting business activity students will understand how accounting concepts and principles are used in reporting financial information. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 1. The purpose of Accounting when they: Explain the concepts of the accounting entity; Identify different organisations / entities which use accounting to record financial information. 1. The need to expand the Accounting Equation when they: Define the different elements of the Accounting Equation (A, L, O.E, R, E); Classify the changes in the Accounting Equation; Define and understand the difference between Revenue and Capital transactions. 1. How financial information is reported by small businesses when they: Define and determine how accounting concepts affect the reporting requirements of financial information; Explain the significance of different revenue and expenditure items for different entities, e.g. trade and service businesses, clubs and other community organisations, farms; Draw up simple Statements of Financial Performance and Statements of Financial Position for Sole Proprietors; (d) Analyse and interpret simple accounting data from the Statements of Financial Performance and Statements of Financial Position for Sole Proprietors. 20 Business Studies Secondary Curriculum Statement

21 STRAND 2 FINANCIAL ACCOUNTING Year 12 Year Different types of business ownership entities when they: Compare and contrast the different ownership characteristics - sole proprietorships, partnerships, limited liability companies and clubs and societies; Compare the alternative accounting methods and presentation (vertical, T - form and narrative) for different types of business organisations. 1. The reporting requirements for the financial statements of business and community organisations when they: Describe the features, functions and limitations of financial statements for business and community organisations; Prepare a columnar worksheet incorporating balance day adjustments; Prepare financial statements for business and community organisations incorporating balance day adjustments (4). (4). Financial statements for business organisations to include: Statement of Accounting Policies, Statement of Financial Performance, Statement of Financial Position and Statement of Changes in Cash Position. Financial statements for community organisations to include: Statement of Accounting Policies, Statements of Changes in Cash Position (Statement of Receipts and Payments), supplementary trading and activity statements (Canteen, Refreshments, Raffle, etc), Statement of Financial Performance (Statement of Income and Expenditure) and Statement of Financial Position. Business Studies Secondary Curriculum Statement 21

22 STRAND 2 FINANCIAL ACCOUNTING AIM: From their study of FINANCIAL ACCOUNTING and reporting business activity students will understand how accounting concepts and principles are used in reporting financial information. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 2. The Accounting Equation when they: Use the accounting equation to record basic cash and credit transactions which only affect Assets, Owner's Equity and Liability items; Describe the different elements in the accounting equation A = O.E. + L; Classify items into categories and show in a Statement of Financial Position. 2. The interpretation of financial transactions when they: Identify and interpret the changes to the Accounting Equation after each transaction; Interpret the transactions that have occurred from the changes to the Accounting Equation; Classify items into categories and show in a Statement of Financial Position. 2. How financial information is reported for clubs and community groups when they: Define and understand accounting for subscriptions; Define and understand accounting for special activities; Prepare simple financial statements for clubs or other community groups; (d) Analyse and interpret simple accounting data for clubs and community groups. 22 Business Studies Secondary Curriculum Statement

23 STRAND 2 FINANCIAL ACCOUNTING Year 12 Year How financial information is reported for different accounting entities when they: Recognise different components included in the Owner's Equity section of the Statement of Financial Position for different entities; Identify and apply accounting concepts to determine financial statements for different entities (5) ; Draw up fully classified financial statements for sole proprietors; (d) Analyse and interpret accounting data from the financial statements for Sole Proprietorships and other entities. 2. How financial and nonfinancial information of Sole Proprietors is used to make informed decisions when they: Categorise relevant ratios and percentages into measures of profitability, financial stability, liquidity and management effectiveness; Analyse financial and nonfinancial data; Interpret and explain the trends shown by the analysis of data (comparing ratios over at least 3 years); (d) Make recommendations appropriate for different interested parties; (e) Report on trends identified under the different categories given in above. (5). Accounting concepts to be covered: Accounting entity, legal entity, monetary measurement, going concern, accounting period, matching concept, accrual basis, cash basis and historical cost concept Business Studies Secondary Curriculum Statement 23

24 STRAND 3 THE ACCOUNTING PROCESS AIM: From their study of THE ACCOUNTING PROCESS students will understand the function of books of first entry in the Accounting Process: Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 1. The process of recording entries to commence business when they: Describe the term transaction and the function of source documents; Describe the function of Journals and their role within the Accounting Process; Record entries in the General Journal to describe commencement of business for a Sole Proprietor (opening balances of Assets and Liabilities); (d) Calculate opening capital by using the basic accounting equation A = L + O.E. 1. The process of recording more complex cash transactions when they: Recall the role and use of Cash Journals; Record complex transactions into the Cash Journals; Describe the purpose of Petty Cash; (d) Record petty cash transactions from source documents in the appropriate manner and transfer to the Payments Journal. 1. The function of the General Journal when they: Recall the role and use of Cash and Goods Journals; Identify and describe the transactions which cannot be recorded in cash or the goods and returns and allowances journals; Describe the function of the General Journal (including how it can be the only journal used); (d) Differentiate between posting all the transactions in the General Journal only and to appropriate journals. 24 Business Studies Secondary Curriculum Statement

25 STRAND 3 THE ACCOUNTING PROCESS Year 12 Year The function of Journals within the Accounting Process when they: Identify entries and relevant sources required on balance date to record Revenue and Expenditure relating to different accounting periods; Identify and describe the straight line and diminishing value methods of accounting for depreciation; Describe the different methods for accounting for and recording of VAGST; (d) Record VAGST for Cash Journal entries only; (e) Classify information from various source documents and record accurately into the appropriate journals; (f) Prepare journals for posting to the relevant General Ledger accounts. 1. The significance of the input and recording stage of the Accounting Process when they: Identify source documents that are used to record transactions in the financial records; Design source documents with necessary features; Review the function of the different journals and categorise the types of transactions recorded in each. Business Studies Secondary Curriculum Statement 25

26 STRAND 3 THE ACCOUNTING PROCESS AIM: From their study of THE ACCOUNTING PROCESS students will understand the function of books of first entry in the Accounting Process: Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 2. The process of recording cash transactions for a Sole Proprietor when they: Identify and describe the source documents for cash transactions (receipts, CRR, sales docket and cheque butts); Record relevant information in the Cash Journals from source documents; Interpret transactions recorded in the different Cash Journals; (d) Prepare Cash Journals for posting to the relevant Ledger Accounts (CRJ - sales, debtors, sundry; CPJ - purchases, creditors, sundry). 2. The process of recording credit purchase or sale and returns and allowances of goods for a Sole Proprietor when they: Describe the function of the four Goods Journals; Identify and describe the source documents for the purchase, sale and returns and allowances of goods on credit; Record information in the Goods Journals from relevant source documents; (d) Prepare Cash and Goods Journals for posting to relevant General Ledger Accounts. 2. Record appropriate transactions in the General Journal (other than balance day adjustments) when they: Identify and describe the source documents for transactions in the General Journal; Record information in the General Journal and other journals from relevant source documents; Interpret transactions recorded in the General Journal; (d) Prepare journals for posting to the relevant Ledger Accounts. 26 Business Studies Secondary Curriculum Statement

27 STRAND 3 THE ACCOUNTING PROCESS Year 12 Year Record transactions for clubs and other community organisations when they: Identify the process for recording transactions for Clubs and Societies; Record simple transactions for Clubs and Societies in appropriate and relevant style (Trading Account, Receipts and Payments, Income and Expenditure Statement and Balance Sheet); Record transactions related to the collection of and accounting for subscriptions including subscriptions in advance and subscriptions in arrears. 2. Necessary journal entries at balance day to meet requirements of the Matching Concept when they: Identify and record closing journal entries as required to prepare final statements; Identify and record reversal entries as required for the start of the new accounting period; Identify, calculate and record balance day adjustments as required for the matching concept. Business Studies Secondary Curriculum Statement 27

28 STRAND 3 THE ACCOUNTING PROCESS AIM: From their study of THE ACCOUNTING PROCESS students will understand the function of ledgers and drawing up of financial statements within the accounting process. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 3. The procedures to post Cash Journals to the General Ledger accounts when they: Describe the different stages of the Accounting Process; Describe the function of the Ledger with the accounting process; Accurately post the relevant information from the Cash Journals to the General Ledger (T form). 3. The procedures to post Goods Journals to the General Ledger accounts when they: Recall the function of the Ledger with the Accounting Process; Accurately post the relevant information from the Goods and Cash Journals to the General Ledger (T form); Draw up the Trial Balance from the details recorded in the Ledger. 3. The procedures to post journal entries to the General Ledger when they: Compare and contrast the different methods of recording information in the Ledger and use accordingly (T form and columnar) to process accounting information; Classify ledger accounts into different accounting equation categories (A,L,O.E, R,E) in preparation for drawing up the financial statements; Identify the function for a Chart of Accounts; (d) Develop a Chart of Accounts useful at this information processing stage. 28 Business Studies Secondary Curriculum Statement

29 STRAND 3 THE ACCOUNTING PROCESS Year 12 Year The function of Subsidiary Ledgers when they: Describe the different stages of the Accounting Process to identify its application to non-profit entities and small businesses; Discuss the function of Subsidiary Ledger within the Accounting Process; Record information for Accounts Receivable and Accounts Payable in the appropriate Subsidiary Ledgers; (d) Post relevant information from the journals to the General Ledger and Subsidiary Ledgers; (e) Compare manual and computer processing methods that can be used for recording, processing and reporting financial information. 3. The significance of recording and processing information through Ledgers when they: Review the recording of financial information in the General Ledger, Accounts Receivable Ledger and Accounts Payable Ledger and balancing these at balance date; Utilise a worksheet to assist in the preparation of final statements from ledger account balances including balance day adjustments; Review the use of a Chart of Accounts by business organisations; (d) Compare and contrast manual and computer processing methods used in the accounting process. Business Studies Secondary Curriculum Statement 29

30 STRAND 3 THE ACCOUNTING PROCESS AIM: From their study of THE ACCOUNTING PROCESS students will understand the function of ledgers and drawing up of financial statements within the accounting process. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 4. The function of a Trial Balance when they: Explain the need for a Trial Balance and its function; Draw up a Trial Balance from the details recorded in the General Ledger for cash transactions. 4. Drawing up of Financial Statements when they: Describe the different stages of the Accounting Process to identify the need for Financial Statements; Identify and describe the different Financial Statements; Draw up Financial Statements for Sole Proprietors (Statement of Financial Position and Statement of Financial Performance). 30 Business Studies Secondary Curriculum Statement

31 STRAND 3 THE ACCOUNTING PROCESS Year 12 Year Preparation and interpretation of Financial Statements of different business organisations when they: Identify information from the ledgers and use to accurately draw up financial statements for service industries, trading firms and community organisations; Analyse and interpret final accounts for Sole Proprietorship entities; Identify and explain general procedures for internal control as a means for managing financial resources of organisations; (d) Describe the features of internal control systems for cash receipts and payments. 4. The development and use of Accounting Sub-systems as appropriate control measures by business organisations when they: Identify and explain the principles and procedures of internal control for business organisations; Describe essential features for internal control systems for cash receipts and payments, inventory, accounts receivable, accounts payable, fixed assets and payroll systems; Identify the accounting concepts and principles relevant to each sub-system described in above; (d) Describe and record the necessary accounting entries required for each of the subsystems. Business Studies Secondary Curriculum Statement 31

32 ECONOMICS STRAND 4 PRODUCTION AIM: From their study of PRODUCTION students will understand the diversity and goals of producers.. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 1. Producers in the economy when they: Describe the economic problem and its relevance to producers; Identify and describe individuals / groups who participate in the production of goods and services; Investigate what goods and services are produced locally and why. 1. Different types of Economic Systems when they: Identify and describe features of the four different types of economic systems; Describe the features of the economic system of Sämoa; Compare and contrast the economic system of Sämoa to that of other nations; (d) Explain why different countries have different economic systems. 1. Business types in the Sämoa economy when they: Compare the three different business organisations present in Sämoa - private, government, and non-profit; Describe the different ownerships, financial and management structures of private organisations; Describe the role that government organisations play in satisfying the needs and wants of consumers. 2. The structure and goals of community organisations when they: Describe the role that clubs and other community organisations play in satisfying the needs and wants of consumers; Describe the structure and procedures of clubs and other community organisations; Demonstrate the use of appropriate procedures to chair various types of meetings. 2. Business management when they: Explain the different goals for businesses; Describe the strategies used by businesses to maximise profits; Identify reasons why businesses can fail or succeed; (d) Compare and contrast structures and procedures of different enterprises. 32 Business Studies Secondary Curriculum Statement

33 ECONOMICS STRAND 4 PRODUCTION Year 12 Year The role of service industries in Sämoa when they: Compare and contrast the different structures of producers in Sämoa; Describe the concepts of interdependence and infrastructure to explain the relationships between individual firms and the service industries of transport, marketing, banking, insurance, accounting and communication. 1. The role of government in the economy when they: Describe the structure of the Sämoan government; Identify and explain the major functions of government; Investigate the economic aims of governments. 2. The concept of productivity and how it can be improved when they: Apply the concepts of specialisation, division of labour, investment and economies and diseconomies of scale in the use of resources for production; Describe how increasing, diminishing and constant returns affect productivity. 2. The main economic issues faced by government when they: Identify and describe economic issues governments commonly face; Investigate different measures and policies developed by governments to address economic issues of employment, growth, trade, inflation and inequality (6) ; Analyse how government measures and policies impact on different economic issues; (d) Categorise the measures used as monetary, fiscal or other. (6) Include types and principles of taxation when looking at different measures developed by governments. Business Studies Secondary Curriculum Statement 33

34 ECONOMICS STRAND 4 PRODUCTION AIM: From their study of PRODUCTION students will understand the concepts related to making economic choices. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 2. Different types of goods and services when they: Define goods and services; Define production and the role of producers in the economy; Distinguish between renewable and non-renewable resources used in production with particular focus on village and national resources. 3. The production of goods and services when they: Determine how the decision is made as to what is produced, how they are produced and for whom they are produced; Identify the three stages of production - primary, secondary and tertiary; Describe the chain of production. 3. How businesses operate in the market place when they: Describe the characteristics of primary, secondary and tertiary sectors; Identify and explain the problems related to the supply of raw materials for production in Sämoa. 3. Factors of production when they: Identify and describe the four factors of production; Describe the features of factors of production for Sämoa; Recognise the combination of factors of production required to produce goods and services. 4. Producers in the Sämoa economy when they: Identify different village and national producers; Determine factors that influence producers' decisions to operate, e.g. location, transport, distribution, other services etc.; Investigate methods used by producers to sell their products / services. 4. Supply of goods and services for individual producers when they: Identify causes (determinants of supply and other influences) that affect the supply of goods and services; Define the Law of Supply; Construct a supply schedule and graph a supply curve for an individual firm; (d) Predict and illustrate how change in price affects quantity supplied. 34 Business Studies Secondary Curriculum Statement

35 ECONOMICS STRAND 4 PRODUCTION Year 12 Year Factors influencing the market supply of goods and services when they: Define market supply; Construct a market supply curve; Identify causes (determinants of supply) for a change in supply; (d) Predict and illustrate how these changes will affect the supply curve. 3. Economic concepts applicable to international trade when they: Explain the relationship of specialisation and exchange to international trade; Distinguish between absolute and comparative advantage; Use simple mathematical examples to illustrate comparative advantage by calculating opportunity cost; (d) Distinguish between terms of trade and gains of trade; (e) Use simple mathematical examples to illustrate gains from trade following specialisation. 4. The importance of markets when they: Recall and distinguish between different types of markets which exist in the economy, such as goods and services and factor markets; Identify and describe features of different market structures of perfect and imperfect competition. Business Studies Secondary Curriculum Statement 35

36 ECONOMICS STRAND 5 CONSUMPTION AIM: From their study of CONSUMPTION students will understand the concepts related to making economic decisions. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 1. How consumers and households make economic decisions when they: Define the terms consumers and households; Describe the economic problem - There are never enough resources available to satisfy all our needs (essential) and wants (non-essential); Distinguish between needs and wants; (d) Investigate the relationship between the concepts of scarcity and choice; (e) Determine factors that influence individuals' decisions (include values, beliefs and attitudes). 2. Consumers as producers when they: Recognise that consumers can also be producers; Describe the relationship between consumers and producers (using a simple circular diagram). 1. How consumers earn their income when they: Describe the different sources of income (earned and unearned) for individuals and households; Interpret documents related to sources of income (incl. Tax) (7) ; Explain the importance that remittances from overseas have on household incomes. 2. The benefits of spending income wisely when they: Construct a budget for spending income wisely; Evaluate different alternatives of spending using the decision making process; Identify opportunity costs related to making specific decisions; (d) Identify the factors which influence decision making such as income levels, personal values, beliefs and priorities; (e) Interpret documents related to the spending of income (incl. VAGST) (8) ; (f) Identify and explain methods for spending income wisely such as buying in bulk, conserving and recycling. 1. Consumption possibilities available to consumers when they: Recall the steps involved in the decision making process; Recognise and describe the costs related to making a choice (opportunity cost); Investigate how government policies affect consumer decisions (9). 2. Demand for goods and services when they: Define the Law of Demand; Identify factors that affect demand for goods and services; Construct a demand schedule and graph a demand curve for an individual; (d) Predict and illustrate how change in price affects quantity demanded. 36 Business Studies Secondary Curriculum Statement

37 ECONOMICS STRAND 5 CONSUMPTION Year 12 Year Factors influencing the market demand for goods and services when they: Define market demand; Construct a market demand curve; Identify causes (determinants of demand) for changes in demand; (d) Predict and illustrate how determinants of demand affect the demand curve. 1. How government earns and spends its income when they: Identify and describe the major sources of government revenue; Identify and describe the major areas of government expenditure; Investigate the components and aims of a government budget. (7). Documents to include payslips, remittance receipts, bank statement entries. (8). Documents to include invoices for household expenses such as telephone, electricity, water meter, shopping dockets, receipts for other payments. (9). Government policies related to import duty, excise tax, subsidies, interest rates, direct tax and indirect tax such as VAGST. Business Studies Secondary Curriculum Statement 37

38 ECONOMICS STRAND 6 THE MARKET AIM: From their study of THE MARKET students will understand the interaction of households and firms in the market. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 1. The development of money when they: Explain the relationship between the concepts of specialisation, interdependence and exchange; Describe the development of money including different forms of money (10). 1. Ways of maximising an individual's income when they: Identify the advantages and disadvantages of borrowing; Compare and contrast the costs of buying on credit and buying with cash; Define the concept of markets; (d) Identify the different markets from which individuals can buy goods and services, e.g. local shop or supermarket, newspaper advertisement, mini-markets, internet, etc. 1. The rights and obligations of consumers and producers in the market when they: Recognise and describe conditions that need to exist for a market; Recall what groups are involved in the economy; Define the term contract and identify the rules or conditions under which contracts exist; (d) Identify the rights and responsibilities of consumers and sellers; (e) Investigate the consumer laws of Sämoa. 38 Business Studies Secondary Curriculum Statement

39 ECONOMICS STRAND 6 THE MARKET Year 12 Year The Circular Flow diagram when they: Identify the relationship of major sectors in the economy - households, producers, government, financial sectors and the overseas sector; Construct and interpret a circular flow diagram to show the inter-dependence of the major sectors in the economy; Define and distinguish between the concepts of GNI, GNE and GDP as measures of circular flows; (d) Recognise and classify different markets - goods and services market, the factor market (11), money market and the overseas market; (e) Identify different markets in Sämoa. 1. The supply of money and its components when they: Recall the functions and characteristics of money; Describe the common measures and components of the money supply; Investigate the functions of central banks, commercial banks and development banks; (d) Explain the quantity theory of money (MV=PT) and use it to illustrate the relationship between the supply of money and prices; (e) Describe the separate effect that these factors will have on the supply of money: government borrowing from the public, overseas and the central bank, foreign aid, remittances and increased lending by commercial banks. (10). Cheques, EFTPOS, credit card payments (11). Include derived demand and final demand as features of the factor market. Business Studies Secondary Curriculum Statement 39

40 ECONOMICS STRAND 6 THE MARKET AIM: From their study of THE MARKET students will understand the interactions between the different sectors in the economy. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 2. Functions of money in the economy when they: Identify the role of money in the economy; Describe the purchasing power of money and its relationship to inflation in simple terms; Describe the qualities of money; (d) Apply the qualities of money to the Sämoan Tälä. 2. The different forms of contracts when they: Describe the different elements of a contract; Distinguish between formal and informal contracts; Describe the principles of insurance as an example of a formal contract and the different forms of insurance available in Sämoa; (d) Investigate which insurance types are the most popular in Sämoa; (e) Investigate the informal contracts that exist to protect the rights of consumers. (12). Include changes in the money supply, demand pull, cost push, government deficit, imported inflation, inflationary expectations, national disasters and wage increases. (13). Balance of visibles (trade), balance of invisibles, current account, capital account, foreign reserves. (14). Include economic effect of embargoes imposed for non-economic reasons. 40 Business Studies Secondary Curriculum Statement

41 ECONOMICS STRAND 6 THE MARKET Year 12 Year The role of money in the economy when they: Recall the functions, characteristics and forms of money; Recognise the role of money and the effect of inflation on purchasing power. 2. Inflation and its effect on the economy when they: Identify the common causes and effects of inflation (12) ; Calculate the rate of inflation from published consumer price index (CPI) figures and describe the trend over time; Describe the procedures used to construct the CPI. 3. The market equilibrium when they: identify market equilibrium and situations of excess supply and excess demand; explain and predict changes in equilibrium price and quantity using supply and demand analysis; analyse the effect of price controls, taxes and subsidies on market equilibrium; (d) compare and contrast price and non-price competition; (e) describe the effects of price and non-price competition on consumers and producers. 3. International trade performance when they: Identify and distinguish between the components of Balance of Payments (13) ; Discuss the economic effect of a surplus or deficit of the Current Account; Explain the reasons and effects of trade restrictions through quotas, tariffs, subsidies and embargoes (14) ; (d) Identify Sämoa's trade commodities and trends in its trading patterns; (e) Identify Sämoa's major trading partners and their relative importance; (f) Identify and discuss current problems faced by Sämoa in developing its trade; (g) Describe the important role of marketing agencies and boards. Business Studies Secondary Curriculum Statement 41

42 ECONOMICS STRAND 6 THE MARKET AIM: From their study of THE MARKET students will understand the interactions between the different sectors in the economy. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : 42 Business Studies Secondary Curriculum Statement

43 ECONOMICS STRAND 6 THE MARKET Year 12 Year The relationship between international trade and exchange rates when they: Describe and distinguish between managed, fixed and floating exchange rates; Investigate and explain reasons for appreciation / depreciation and revaluation / devaluation of the exchange rate; Explain the effects of revaluation and devaluation and appreciation and depreciation on exports, imports and Balance of Payments; (d) Distinguish between weak and strong international currencies; (e) Calculate foreign exchange rates. 5. The characteristics of the economy of developed and developing countries when they: Identify and describe characteristics of the economy for developed and developing countries; Compare and contrast characteristics of the economy for developed and developing countries (15) ; Recognise the importance of foreign aid and foreign investment to Sämoa's economy. 6. The recent developments in Sämoa's economy when they: Identify the major components of national income and expenditure of the economy of Sämoa; Describe recent trends in the economy of Sämoa; Recognise and discuss measures adopted by the government of Sämoa to develop the economy; (d) Identify international agencies which aid development in the economy of Sämoa (incl. IMF); (e) Evaluate the contributions made by international agencies to aid development in the economy of Sämoa. (15) Refer to the PSSC prescription Section V to identify characteristics required to be included in the teaching programme. Business Studies Secondary Curriculum Statement 43

44 STRAND 7 COMMUNICATION - ORAL AIM: In their study of BUSINESS STUDIES students should be able to participate effectively through developing their oral communication skills. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : Express ideas appropriately in various group activities stating reasons for their opinions, e.g., discussions, planning; Ask and respond to a range of questions and instructions; Give brief definitions and explanations of concepts and relationships between concepts; Give brief descriptions of stages in processes e.g., money exchange, accounting stages; functions and roles of documents and procedures; Use language to state comparison; Use paraphrasing to give oral interpretation of information presented visually in charts, diagrams, posters, pictures; Give a brief oral report of their findings from an investigation; State clearly what a problem is, probable causes, and likely solutions; Give an oral summary of the key points from an oral or written source e.g., newspaper; Understand debating procedures, and participate in a debate. At this level students are stating their position with justification and are able to refute the position of others logically in simple language. Speak effectively from notes in a short presentation; Give an oral summary of economic systems, and state which one Sämoa s system identifies with and why; Take notes from short presentations; Discuss ideas and responses in small groups; Conduct interviews to obtain required information; Give extended explanations; descriptions of sequence, cause and effect; comparisons; reports; Paraphrase key ideas to demonstrate their understanding; Present a plan for a case study and report findings; State principles underlying conventions in accounting procedures. Communicate effectively by sharing ideas, offering advice, opinion and information and reacting to the contributions of others; Interpret oral/written texts from own point of view, expresses opinions, draws conclusions; Demonstrate ability to develop a topic in subject related situations: e.g., reporting, describing, comparing; Participate in various speaking activities such as seminars, group presentations, oral reports, debates and interviews; Conduct an interview or survey using a range of question types to get specific information, and report the results; Describe procedures for and chair various types of meetings; Using analysis, give an oral evaluation and extended reasons for their points of view about a situation; State principles and laws and explain their significance and application to a number of situations; Discuss a plan for an investigation; Give oral interpretations of information in various financial records; Make a case for following a particular action e.g., setting up a small business; choosing a particular product for cash cropping. 44 Business Studies Secondary Curriculum Statement

45 STRAND 7 COMMUNICATION - ORAL Year 12 Year 13 Participate in various speaking activities such as seminars, group presentations, oral reports, debates, interviews; Summarise main ideas from written or spoken texts using precise language; Select and sustain language and style appropriate to a given situation, purpose, audience; Take notes from extended presentations and draw their own conclusions and make inferences based on the information given; Use oral language to criticise, evaluate, plan and to influence the thinking of others; Defend a point of view, applying analysis and principles; Listen to evaluate, draw inferences and make judgements. Participate in various speaking activities such as seminars, group presentations, oral reports, debates, interviews; Summarise main ideas from written or spoken texts using precise language; Select and sustain language and style appropriate to a given situation, purpose, audience; Take notes from extended presentations and draw their own conclusions and make inferences based on the information given; Use oral language to criticise, evaluate, plan and to influence the thinking of others; Defend a point of view, applying analysis and principles; Listen to evaluate, draw inferences and make judgements. Business Studies Secondary Curriculum Statement 45

46 STRAND 7 COMMUNICATION - WRITTEN AIM: In their study of BUSINESS STUDIES students should be able to participate effectively through developing their written communication skills. Year 9 Year 10 Year 11 Achievement Objectives: Students will investigate and develop their skills and undertanding of : Use the first 2000 words, and the technical vocabulary of each topic; Locate, extract and interpret information from appropriate materials such as charts, graphs, special publications, advertisements and newspapers; Recognise the language structures that signal the logical organisation of information in: definitions; chronological sequence; cause and effect; problems/solution; compare/contrast; Use language to: express cause and effect; state research questions; give basic definitions; state problems/solutions; comparison/contrast; state Use mind maps and other forms of visual representations to express key ideas and show relationships between ideas e.g., flow charts, diagrams, picture stories; Write to express ideas in simple paragraphs to explain, e.g., a diagram, information entered in journal; Write paragraph summaries, paraphrases of information presented visually; Write a simple but complete report of a case study investigation. Establish the use of the first 2000 words, and use the technical vocabulary of each topic; Extract key ideas from short passages and draw conclusions; Recognise the language structures that signal the logical organisation of information in: compare and contrast; procedure; cause and effect; principles; justification; Write to compare and contrast; Combine paragraphs to write increasingly detailed descriptions and explanations e.g., description of systems; explanation of taxation practice; Write reports of investigations summarising findings from interviews. Introduce the use of words from the academic word list, use the technical vocabulary of each topic; Use reference materials; locating, evaluating and selecting information; Use a variety of sentences (simple, compound, and complex) to produce coherent and effective texts; Recognise the language structures that signal the logical organisation of information: summary, conclusion; generalisation and examples; principles; extended definitions; classifications; analysis; Write curriculum vitae, covering letters and other business-related correspondence. Write an analysis of a problem expressing possible solutions, assumptions, consequences, and conclusions; Write to express ideas in complex paragraphs to: explain e.g., the significance of certain principles and their application in practice; summarise interpretation of information documented in accounting formats; Write reports of investigations, case studies, stating generalisations from findings; Introduce the conventions of academic writing in their presentations, e.g., citing references in writing, quotations, and providing a bibliography. 46 Business Studies Secondary Curriculum Statement

47 STRAND 7 COMMUNICATION - WRITTEN Year 12 Year 13 Use words from the academic word list and the technical vocabulary of each topic in a variety of situations at this year level e.g., reports; Recognise the language structures that signal the logical organisation of information: argument; research reports; Extract more detailed information and write coherent, longer texts integrating information from multiple sources; Write argument texts: thesis statement, followed by argument, followed by conclusion; Write research reports using illustrations, graphs or charts; Write an analysis of a problem expressing possible solutions, assumptions, consequences, and conclusions. Evidence from other sources is cited to support proposed solutions; Take notes, select and synthesise relevant information, plan text sequence and write short essays using different methods of development: comparison, extended definition, cause and effect; Follow the conventions of academic writing in their presentations e.g., citing references in writing, quotations, and providing a bibliography. Use words from the academic word list and the technical vocabulary of each topic in a variety of situations at this year level e.g., reports; Recognise the language structures that signal the logical organisation of information: argument; research reports; Extract more detailed information and write coherent, longer texts integrating information from multiple sources; Write argument texts: thesis statement, followed by argument, followed by conclusion; Write research reports using illustrations, graphs or charts; Write an analysis of a problem expressing possible solutions, assumptions, consequences, and conclusions. Evidence from other sources is cited to support proposed solutions; Take notes, select and synthesise relevant information, plan text sequence and write short essays using different methods of development: comparison, extended definition, cause and effect; Follow the conventions of academic writing in their presentations e.g., citing references in writing, quotations, and providing a bibliography. Business Studies Secondary Curriculum Statement 47

48 48 Business Studies Secondary Curriculum Statement

49 Achievement Objectives Business Studies Years 9-11 with Accounting Years Economics Years Business Studies Secondary Curriculum Statement 49

50 Year9 Business Studies 1. ACCOUNTING APPLICATIONS HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN MAKING DECISIONS. Students will investigate and develop skills and understanding of: 1. How accounting affects their everyday life when they: Define the term accounting and its purpose; Describe the relationship between accounting and economics; Identify various situations where a system of accounting would be useful in terms of managing and recording the use of resources. 2. The role of accountants in society when they: Identify the role of accountants in the business sector; Investigate the areas of specialisation in accounting. 2. FINANCIAL ACCOUNTING HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN REPORTING FINANCIAL INFORMATION. Students will investigate and develop skills and understanding of: 1. The purpose of Accounting when they: Explain the concepts of the accounting entity; Identify different organisations/entities which use accounting to record financial information. 2. The Accounting Equation when they: Use the accounting equation to record basic cash and credit transactions which only affect Assets, Owner's Equity and Liability items; Describe the different elements in the accounting equation A = O.E. + L; Classify items into categories and show in a Statement of Financial Position. 50 Business Studies Secondary Curriculum Statement

51 Year9 Business Studies 3. THE ACCOUNTING PROCESS THE FUNCTION OF BOOKS OF FIRST ENTRY IN THE ACCOUNTING PROCESS Students will develop knowledge, skills and understanding by: 1. The process of recording entries to commence business when they: (d) Describe the term transaction and the function of source documents; Describe the function of Journals and their role within the Accounting Process; Record entries in the General Journal to describe commencement of business for a Sole Proprietor (opening balances of Assets and Liabilities) Calculate opening capital by using the basic accounting equation A = L + O.E. 2. The process of recording cash transactions for a Sole Proprietor when they: (d) Identify and describe the source documents for cash transactions (receipts, CRR, sales docket and cheque butts); Record relevant information in the Cash Journals from source documents; Interpret transactions recorded in the different Cash Journals; Prepare Cash Journals for posting to the relevant Ledger Accounts (CRJ - sales, debtors, sundry; CPJ - purchases, creditors, sundry). 3. The procedures to post Cash Journals to the General Ledger accounts when they: Describe the different stages of the Accounting Process; Describe the function of the Ledger with the accounting process; Accurately post the relevant information from the Cash Journals to the General Ledger (T form). 4. The function of a Trial Balance when they: Explain the need for a Trial Balance and its function; Draw up a Trial Balance from the details recorded in the General Ledger for cash transactions. Business Studies Secondary Curriculum Statement 51

52 Year9 Business Studies 4. PRODUCTION THE DIVERSITY AND GOALS OF PRODUCERS Students will develop knowledge, skills and understanding of: 1. Producers in the economy when they: Describe the economic problem and its relevance to producers; Identify and describe individuals / groups who participate in the production of goods and services; Investigate what goods and services are produced locally and why. THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES Students will develop knowledge, skills and understanding of: 2. Different types of goods and services when they: Define goods and services; Define production and the role of producers in the economy; Distinguish between the renewable and non-renewable resources used in the production, with particular focus on village, local and national resources. 3. Factors of production when they: Identify and describe the four factors of production; Describe the features of factors of production for Sämoa; Recognise the combination of factors of production required to produce goods and services. 52 Business Studies Secondary Curriculum Statement

53 Year9 Business Studies 5. CONSUMPTION THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES. Students will develop knowledge, skills and understanding of: 1. How consumers and households make economic decisions when they: (d) (e) Define the terms consumers and households; Describe the economic problem - There are never enough resources available to satisfy all our needs (essential) and wants (non-essential); Distinguish between needs and wants; Investigate the relationship between the concepts of scarcity and choice; Determine factors that influence individuals' decisions (include values, beliefs and attitudes). 2. Consumers as producers when they: Recognise that consumers can also be producers; Describe the relationship between consumers and producers (using a simple circular diagram). 6. THE MARKET THE INTERACTION OF HOUSEHOLDS AND FIRMS IN THE MARKET Students will investigate and develop skills and understanding of: 1. The development of money when they: Explain the relationship between the concepts of specialisation, interdependence and exchange; Describe the development of money including different forms of money(cheques, EFTPOS, credit card payments). 2. Functions of money in the economy when they: (d) Identify the role of money in the economy; Describe the purchasing power of money and its relationship to inflation in simple terms; Describe the qualities of money; Apply the qualities of money to the Sämoan Tälä. Business Studies Secondary Curriculum Statement 53

54 Year9 Business Studies 7. COMMUNICATION ORAL COMMUNICATION PARTICIPATE EFFECTIVELY THROUGH DEVELOPING THEIR ORAL COMMUNICATION SKILLS. From their learning activities and practical experiences students should be able to: Express ideas appropriately in various group activities stating reasons for their opinions, e.g., discussions, planning; Ask and respond to a range of questions and instructions; Give brief definitions and explanations of concepts and relationships between concepts; Give brief descriptions of stages in processes e.g., money exchange, accounting stages; functions and roles of documents and procedures; Use language to state comparison; Use paraphrasing to give oral interpretation of information presented visually in charts, diagrams, posters, pictures; Give a brief oral report of their findings from an investigation; State clearly what a problem is, probable causes, and likely solutions; Give an oral summary of the key points from an oral or written source e.g., newspaper; Understand debating procedures, and participate in a debate. At this level students are stating their position with justification and are able to refute the position of others logically in simple language. 54 Business Studies Secondary Curriculum Statement

55 Year9 Business Studies WRITTEN COMMUNICATION PARTICIPATE EFFECTIVELY THROUGH DEVELOPING THEIR WRITTEN COMMUNICATION SKILLS. From their learning activities and practical experiences students should be able to: Use the first 2000 words, and the technical vocabulary of each topic; Locate, extract and interpret information from appropriate materials such as charts, graphs, special publications, advertisements and newspapers; Recognise the language structures that signal the logical organisation of information in: definitions; chronological sequence; cause and effect; problems/solution; compare/contrast; Use language to: express cause and effect; state research questions; give basic definitions; state problems/solutions; state comparison/contrast; Use mind maps and other forms of visual representations to express key ideas and show relationships between ideas e.g., flow charts, diagrams, picture stories etc; Write to express ideas in simple paragraphs to explain, e.g., a diagram, information entered in journal; Write paragraph summaries, paraphrases of information presented visually; Write a simple but complete report of a case study investigation. Business Studies Secondary Curriculum Statement 55

56 Year10 Business Studies 1. ACCOUNTING APPLICATIONS HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN MAKING DECISIONS. Students will investigate and develop skills and understanding of: 1. How to manage personal finances when they: Describe the different parts which make up a Personal / Family Budget; (d) (e) Prepare a budget for an individual and family; Identify the source documents which are evidence of income and expenditure items of a budget; Utilise budgets to control and manage individual / family spending; Prepare a Statement of Affairs for an individual. 2. Methods of payment when they: (d) (e) Describe the function of cheques; Identify the different parts of a cheque and how to safeguard against misuse or theft; Compare the advantages and disadvantages of using cash rather than cheques for payment of expenses; Compare and contrast different methods used for payment of expenses such as EFTPOS, credit card; Describe the features of electronic banking (ebank). 2. FINANCIAL ACCOUNTING HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN REPORTING FINANCIAL INFORMATION. Students will investigate and develop skills and understanding of: 1. The need to expand the Accounting Equation when they: Define the different elements of the Accounting Equation (A, L, O.E, R, E); Classify the changes in the Accounting Equation; Define and understand the difference between Revenue and Capital transactions. 2. The interpretation of financial transactions when they: Identify and interpret the changes to the Accounting Equation after each transaction; 56 Business Studies Secondary Curriculum Statement

57 Year10 Business Studies Interpret the transactions that have occurred from the changes to the Accounting Equation; Classify items into categories and show in a Statement of Financial Position. 3. THE ACCOUNTING PROCESS THE FUNCTION OF BOOKS OF FIRST ENTRY IN THE ACCOUNTING PROCESS Students will investigate and develop skills and understanding of: 1. The process of recording more complex cash transactions when they: (d) Recall the role and use of Cash Journals; Record complex transactions into the Cash Journals; Describe the purpose of Petty Cash; Record petty cash transactions from source documents in the appropriate manner and transfer to the Payments Journal. 2. The process of recording credit purchase or sale and returns and allowances of goods for a Sole Proprietor when they: (d) Describe the function of the four Goods Journals; Identify and describe the source documents for the purchase, sale and returns and allowances of goods on credit; Record information in the Goods Journals from relevant source documents; Prepare Cash and Goods Journals for posting to relevant General Ledger Accounts. LEDGERS AND DRAWING UP OF FINANCIAL STATEMENTS WITHIN THE ACCOUNTING PROCESS. Students will investigate and develop skills and understanding of: 3. The procedures to post Goods Journals to the General Ledger accounts when they: Recall the function of the Ledger with the Accounting Process; Accurately post the relevant information from the Goods and Cash Journals to the General Ledger (T form); Draw up the Trial Balance from the details recorded in the Ledger. Business Studies Secondary Curriculum Statement 57

58 Year10 Business Studies 4. PRODUCERS DECISIONS THE DIVERSITY AND GOALS OF PRODUCERS Students will develop knowledge, skills and understanding of: 1. Different types of Economic Systems when they: (d) Identify and describe features of the four different types of economic systems; Describe the features of the economic system of Sämoa; Compare and contrast the economic system of Sämoa to that of other nations; Explain why different countries have different economic systems. 2. The structure and goals of community organisations when they: Describe the role that clubs and other community organisations play in satisfying the needs and wants of consumers; Describe the structure and procedures of clubs and other community organisations; Demonstrate the use of appropriate procedures to chair various types of meetings. THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES Students will develop knowledge, skills and understanding by: 3. The production of goods and services when they: Determine how the decision is made as to what is produced, how they are produced and for whom they are produced; Identify the three stages of production - primary, secondary and tertiary; Describe the chain of production. 4. Producers in the Sämoa economy when they: Identify different village and national producers; Determine factors that influence producers' decisions to operate, e.g. location, transport, distribution, other services etc.; Investigate methods used by producers to sell their products / services. 58 Business Studies Secondary Curriculum Statement

59 Year10 Business Studies 5. CONSUMPTION THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES. Students will develop knowledge, skills and understanding of: 1. How consumers earn their income when they: Describe the different sources of income (earned and unearned) for individuals and households; Interpret documents related to sources of income (incl. Tax)(Documents to include payslips, remittance receipts, bank statement entries.); Explain the importance that remittances from overseas have on household incomes. 2. The benefits of spending income wisely when they: (d) (e) (f) Construct a budget for spending income wisely; Evaluate different alternatives of spending using the decision making process; Identify opportunity costs related to making specific decisions; Identify the factors which influence decision making such as income levels, personal values, beliefs and priorities; Interpret documents related to the spending of income (incl. VAGST) (Documents to include invoices for household expenses such as telephone, electricity, water meter, shopping dockets, receipts for other payments.); Identify and explain methods for spending income wisely such as buying in bulk, conserving and recycling. 6. THE MARKET THE INTERACTION OF HOUSEHOLDS AND FIRMS IN THE MARKET Students will investigate and develop skills and understanding of: 1. Ways of maximising an individual's income when they: (d) Identify the advantages and disadvantages of borrowing; Compare and contrast the costs of buying on credit and buying with cash; Define the concept of markets; Identify the different markets from which individuals can buy goods and services, e.g. local shop or supermarket, newspaper advertisement, mini-markets, internet, etc. Business Studies Secondary Curriculum Statement 59

60 Year10 Business Studies 7. COMMUNICATION ORAL COMMUNICATION PARTICIPATE EFFECTIVELY THROUGH DEVELOPING THEIR ORAL COMMUNICATION SKILLS. From their learning activities and practical experiences students should be able to: Speak effectively from notes in a short presentation; Give an oral summary of economic systems, and state which one Sämoa s system identifies with and why; Take notes from short presentations; Discuss ideas and responses in small groups; Conduct interviews to obtain required information; Give extended explanations; descriptions of sequence, cause and effect; comparisons; reports; Paraphrase key ideas to demonstrate their understanding; Present a plan for a case study and report findings; State principles underlying conventions in accounting procedures. WRITTEN COMMUNICATION PARTICIPATE EFFECTIVELY THROUGH DEVELOPING THEIR WRITTEN COMMUNICATION SKILLS. From their learning activities and practical experiences students should be able to: Establish the use of the first 2000 words, and use the technical vocabulary of each topic; Extract key ideas from short passages and draw conclusions; Recognise the language structures that signal the logical organisation of information in: compare and contrast; procedure; cause and effect; principles; justification; Write to compare and contrast; Combine paragraphs to write increasingly detailed descriptions and explanations e.g., description of systems; explanation of taxation practice; Write reports of investigations summarising findings from interviews. 60 Business Studies Secondary Curriculum Statement

61 Year11 Business Studies 1. ACCOUNTING APPLICATIONS HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN MAKING DECISIONS. Students will investigate and develop skills and understanding of: 1. Managing finances related to individual and family events when they: (d) (e) Classify the different expenditure relevant to different events which affect individuals living in Sämoa; Recognise and discuss the conflict between the principles of good financial management and values upon which decisions are made; Evaluate the benefits and costs of a non-financial nature which influence decision-making for such events; Recognise and interpret different entries in a bank statement; Reconcile bank statements with personal cheque records. 2. Establishing a small business in Sämoa when they: (d) Describe different small business financing options such as small loans for businesses, micro-financing; Investigate the possibility of setting up a small business in a village, e.g. costs, sources of capital, availability of products; Prepare a business plan for a small business; Establish a case for setting up a small business in an urban part of Sämoa. 2. FINANCIAL ACCOUNTING HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN REPORTING FINANCIAL INFORMATION. Students will investigate and develop skills and understanding of: 1. How financial information is reported by small businesses when they: Define and determine how accounting concepts affect the reporting requirements of financial information; Explain the significance of different revenue and expenditure items for different entities, e.g. trade and service businesses, clubs and other community organisations, farms; Draw up simple Statements of Financial Performance and Statements of Financial Position for Sole Proprietors; Business Studies Secondary Curriculum Statement 61

62 Year11 Business Studies (d) Analyse and interpret simple accounting data from the Statements of Financial Performance and Statements of Financial Position for Sole Proprietors. 2. How financial information is reported for clubs and community groups when they: (d) Define and understand accounting for subscriptions; Define and understand accounting for special activities; Prepare simple financial statements for clubs or other community groups; Analyse and interpret simple accounting data for clubs and community groups. 3. THE ACCOUNTING PROCESS THE FUNCTION OF BOOKS OF FIRST ENTRY IN THE ACCOUNTING PROCESS Students will investigate and develop skills and understanding of: 1. The function of the General Journal when they: (d) Recall the role and use of Cash and Goods Journals; Identify and describe the transactions which cannot be recorded in cash or the goods and returns and allowances journals; Describe the function of the General Journal (including how it can be the only journal used); Differentiate between posting all the transactions in the General Journal only and to appropriate journals. 2. Record appropriate transactions in the General Journal (other than balance day adjustments) when they: (d) Identify and describe the source documents for transactions in the General Journal; Record information in the General Journal and other journals from relevant source documents; Interpret transactions recorded in the General Journal; Prepare journals for posting to the relevant Ledger Accounts. 62 Business Studies Secondary Curriculum Statement

63 Year11 Business Studies LEDGERS AND DRAWING UP OF FINANCIAL STATEMENTS WITHIN THE ACCOUNTING PROCESS. Students will investigate and develop skills and understanding of: 3. The procedures to post journal entries to the General Ledger when they: (d) Compare and contrast the different methods of recording information in the Ledger and use accordingly (T form and columnar) to process accounting information; Classify ledger accounts into different accounting equation categories (A,L,O.E, R,E) in preparation for drawing up the financial statements; Identify the function for a Chart of Accounts; Develop a Chart of Accounts useful at this information processing stage. 4. Drawing up of Financial Statements when they: Describe the different stages of the Accounting Process to identify the need for Financial Statements; Identify and describe the different Financial Statements; Draw up financial statements for Sole Proprietors (Statement of Financial Position and Statement of Financial Performance). 4. PRODUCTION THE DIVERSITY AND GOALS OF PRODUCERS Students will develop knowledge, skills and understanding by: 1. Business types in the Sämoa economy when they: Compare the three different business organisations present in Sämoa - private, government, and non-profit; Describe the different ownerships, financial and management structures of private organisations; Describe the role that government organisations play in satisfying the needs and wants of consumers. Business Studies Secondary Curriculum Statement 63

64 Year11 Business Studies 2. Business management when they: (d) Explain the different goals for businesses; Describe the strategies used by businesses to maximise profits; Identify reasons why businesses can fail or succeed; Compare and contrast structures and procedures of different enterprises. UNDERSTAND THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES. 3. How businesses operate in the market place when they: Describe the characteristics of primary, secondary and tertiary sectors; Identify and explain the problems related to the supply of raw materials for production in Sämoa. 4. Supply of goods and services for individual producers when they: (d) Identify causes (determinants of supply and other influences) that affect the supply of goods and services; Define the Law of Supply; Construct a supply schedule and graph a supply curve for an individual firm; Predict and illustrate how change in price affects quantity supplied. 5. CONSUMPTION THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES. Students will develop knowledge, skills and understanding of: 1. Consumption possibilities available to consumers when they: Recall the steps involved in the decision making process; Recognise and describe the costs related to making a choice (opportunity cost); Investigate how government policies affect consumer decisions(government policies related to import duty, excise tax, subsidies, interest rates, direct tax and indirect tax such as VAGST.). 64 Business Studies Secondary Curriculum Statement

65 Year11 Business Studies 2. Demand for goods and services when they: (d) Define the Law of Demand; Identify factors that affect demand for goods and services; Construct a demand schedule and graph a demand curve for an individual; Predict and illustrate how change in price affects quantity demanded. 6. THE MARKET THE INTERACTION OF HOUSEHOLDS AND FIRMS IN THE MARKET Students will investigate and develop skills and understanding of: 1. The rights and obligations of consumers and producers in the market when they: (d) (e) Recognise and describe conditions that need to exist for a market; Recall what groups are involved in the economy; Define the term contract and identify the rules or conditions under which contracts exist; Identify the rights and responsibilities of consumers and sellers; Investigate the consumer laws of Sämoa. 2 The different forms of contracts when they: (d) (e) Describe the different elements of a contract; Distinguish between formal and informal contracts; Describe the principles of insurance as an example of a formal contract and the different forms of insurance available in Sämoa; Investigate which insurance types are the most popular in Sämoa; Investigate the informal contracts that exist to protect the rights of consumers. Business Studies Secondary Curriculum Statement 65

66 7. COMMUNICATION ORAL COMMUNICATION PARTICIPATE EFFECTIVELY THROUGH DEVELOPING THEIR ORAL COMMUNICATION SKILLS. From their learning activities and practical experiences students should be able to: Communicate effectively by sharing ideas, offering advice, opinion and information and reacting to the contributions of others; Interpret oral/written texts from own point of view, expresses opinions, draws conclusions; Demonstrate ability to develop a topic in subject related situations: e.g., reporting, describing, comparing; Participate in various speaking activities such as seminars, group presentations, oral reports, debates and interviews; Conduct an interview or survey using a range of question types to get specific information, and report the results; Describe procedures for and chair various types of meetings; Using analysis, give an oral evaluation and extended reasons for their points of view about a situation; State principles, laws and explain their significance and application to a number of situations; Discuss a plan for an investigation; Give oral interpretation of information in various financial records; Make a case for following a particular action e.g., setting up a small business; choosing a particular product for cash cropping. 66 Business Studies Secondary Curriculum Statement

67 WRITTEN COMMUNICATION PARTICIPATE EFFECTIVELY THROUGH DEVELOPING THEIR WRITTEN COMMUNICATION SKILLS. From their learning activities and practical experiences students should be able to: Introduce the use of words from the academic word list, use the technical vocabulary of each topic; Use reference materials; locating, evaluating and selecting information; Use a variety of sentences (simple, compound, and complex) to produce coherent and effective texts; Recognise the language structures that signal the logical organisation of information: summary, conclusion; generalisation and examples; principles; extended definitions; classifications; analysis; Write curriculum vitae, covering letters and other businessrelated correspondence; Write an analysis of a problem expressing possible solutions, assumptions, consequences, and conclusions; Write to express ideas in complex paragraphs to: explain e.g., the significance of certain principles and their application in practice; summarise interpretation of information documented in accounting formats; Write reports of investigations, case studies, stating generalisations from findings; Introduce the conventions of academic writing in their presentations, e.g., citing references in writing, quotations, and providing a bibliography. Business Studies Secondary Curriculum Statement 67

68 68 Business Studies Secondary Curriculum Statement

69 Accounting Achievement Objectives Years Business Studies Secondary Curriculum Statement 69

70 Year12 Accounting 1. ACCOUNTING APPLICATIONS HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN MAKING DECISIONS. Students will investigate and develop skills and understanding of: 1. The nature, purpose and functions of accounting: (d) (e) Identify and recall the purposes of different financial documents consumers use in everyday life; Identify ways to organise and store personal accounting documents; Recognise different areas of specialisation in Accounting as a career (Cost accountant, management, taxation, auditing, financial accountant.); Identify users of accounting information; Recognise the importance of non-financial information. 2. FINANCIAL ACCOUNTING HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN REPORTING FINANCIAL INFORMATION. Students will investigate and develop skills and understanding of: 1. Different types of business ownership entities when they: Compare and contrast the different ownership characteristics - sole proprietorships, partnerships, limited liability companies and clubs and societies; Compare the alternative accounting methods and presentation (vertical, T - form and narrative) for different types of business organisations. 2. How financial information is reported for different accounting entities when they: (d) Recognise different components included in the Owner's Equity section of the Statement of Financial Position for different entities (Accounting concepts to be covered - accounting entity, legal entity, monetary measurement, going concern, accounting period, matching concept, accrual basis, cash basis and historical cost concept); Identify and apply accounting concepts to determine financial statements for different entities; Draw up fully classified financial statements for sole proprietors; Analyse and interpret accounting data from the financial statements for Sole Proprietorships and other entities. 70 Business Studies Secondary Curriculum Statement

71 Year12 Accounting 3. THE ACCOUNTING PROCESS THE FUNCTION OF BOOKS OF FIRST ENTRY IN THE ACCOUNTING PROCESS Students will investigate and develop skills and understanding of: 1. The function of Journals within the Accounting Process when they: (d) (e) (f) Identify entries and relevant sources required on balance date to record Revenue and Expenditure relating to different accounting periods; Identify and describe the straight line and diminishing value methods of accounting for depreciation; Describe the different methods for accounting for and recording of VAGST; Record VAGST for Cash Journal entries only; Classify information from various source documents and record accurately into the appropriate journals; Prepare journals for posting to the relevant General Ledger accounts. 2. Record transactions for clubs and other community organisations when they: Identify the process for recording transactions for Clubs and Societies; Record simple transactions for Clubs and Societies in appropriate and relevant style (Trading Account, Receipts and Payments, Income and Expenditure Statement and Balance Sheet); Record transactions related to the collection of and accounting for subscriptions including subscriptions in advance and subscriptions in arrears. 3. The function of Subsidiary Ledgers when they: (d) (e) Describe the different stages of the Accounting Process to identify its application to non-profit entities and small businesses; Discuss the function of Subsidiary Ledger within the Accounting Process; Record information for Accounts Receivable and Accounts Payable in the appropriate Subsidiary Ledgers; Post relevant information from the journals to the General Ledger and Subsidiary Ledgers; Compare manual and computer processing methods that can be used for recording, processing and reporting financial information. Business Studies Secondary Curriculum Statement 71

72 Year12 Accounting LEDGERS AND DRAWING UP OF FINANCIAL STATEMENTS WITHIN THE ACCOUNTING PROCESS. Students will investigate and develop skills and understanding of: 4. Preparation and interpretation of Financial Statements of different business organisations when they: (d) Identify information from the ledgers and use to accurately draw up financial statements for service industries, trading firms and community organisations; Analyse and interpret final accounts for Sole Proprietorship entities; Identify and explain general procedures for internal control as a means for managing financial resources of organisations; Describe the features of internal control systems for cash receipts and payments. 72 Business Studies Secondary Curriculum Statement

73 Year13 Accounting 1. ACCOUNTING APPLICATIONS HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN MAKING DECISIONS. Students will investigate and develop skills and understanding of: 1. How accounting concepts and principles are applied by individuals and business and community organisations when they: (d) Collect, interpret and analyse household source documents; Review the importance and relevance of accounting concepts (Accounting entity, monetary measurement, going concern, accounting period, matching, accrual basis, historical cost, materiality, prudence (conservatism), consistency, disclosure.); Identify and describe the qualitative characteristics of accounting information (Relevance, reliability, understandability, comparability, timeliness, neutrality, verifiability, objectivity.); Determine tertiary education opportunities and qualifications available in the area of accounting in the Pacific region. 2. FINANCIAL ACCOUNTING HOW ACCOUNTING CONCEPTS AND PRINCIPLES CAN BE USED IN REPORTING FINANCIAL INFORMATION. Students will investigate and develop skills and understanding of: 1. The reporting requirements for the financial statements of business and community organisations when they: Describe the features, functions and limitations of financial statements for business and community organisations; Prepare a columnar worksheet incorporating balance day adjustments; Prepare financial statements for business and community organisations incorporating balance day adjustments (Financial statements for business organisations to include Statement of Accounting Policies, Statement of Financial Performance, Statement of Financial Position and Statement of Changes in Cash Position. Financial statements for community organisations to include Statement of Accounting Policies, Statements of Changes in Cash Position (Statement of Receipts and Payments), supplementary trading and activity statements (Canteen, Refreshments, Raffle, etc), Statement of Financial Performance (Statement of Income and Expenditure) and Statement of Financial Position.). Business Studies Secondary Curriculum Statement 73

74 Year13 Accounting 2. How financial and non-financial information of Sole Proprietors is used to make informed decisions. (d) (e) Categorise relevant ratios and percentages into measures of profitability, financial stability, liquidity and management effectiveness; Analyse financial and non-financial data; Interpret and explain the trends shown by the analysis of data (comparing ratios over at least 3 years); Make recommendations appropriate for different interested parties; Report on trends identified under the different categories given in above. 3. THE ACCOUNTING PROCESS THE FUNCTION OF BOOKS OF FIRST ENTRY IN THE ACCOUNTING PROCESS Students will investigate and develop skills and understanding of: 1. The significance of the input and recording stage of the Accounting Process when they: Identify source documents that are used to record transactions in the financial records; Design source documents with necessary features; Review the function of the different journals and categorise the types of transactions recorded in each. 2. Necessary journal entries at balance day to meet requirements of the Matching Concept when they: Identify and record closing journal entries as required to prepare final statements; Identify and record reversal entries as required for the start of the new accounting period; Identify, calculate and record balance day adjustments as required for the matching concept. 74 Business Studies Secondary Curriculum Statement

75 Year13 Accounting 3. The significance of recording and processing information through Ledgers when they: (d) Review the recording of financial information in the General Ledger, Accounts Receivable Ledger and Accounts Payable Ledger and balancing these at balance date; Utilise a worksheet to assist in the preparation of final statements from ledger account balances including balance day adjustments; Review the use of a Chart of Accounts by business organisations; Compare and contrast manual and computer processing methods used in the accounting process. LEDGERS AND DRAWING UP OF FINANCIAL STATEMENTS WITHIN THE ACCOUNTING PROCESS. Students will investigate and develop skills and understanding of: 4. The development and use of Accounting Sub-systems as appropriate control measures by business organisations when they: (d) Identify and explain the principles and procedures of internal control for business organisations; Describe essential features for internal control systems for cash receipts and payments, inventory, accounts receivable, accounts payable, fixed assets and payroll systems. Identify the accounting concepts and principles relevant to each sub-system described in above; Describe and record the necessary accounting entries required for each of the sub-systems. Business Studies Secondary Curriculum Statement 75

76 76 Business Studies Secondary Curriculum Statement

77 Economics Achievement Objectives Years Business Studies Secondary Curriculum Statement 77

78 Year12 Economics 4. PRODUCTION THE DIVERSITY AND GOALS OF PRODUCERS Students will develop knowledge, skills and understanding of: 1. The role of service industries in Sämoa when they: Compare and contrast the different structures of producers in Sämoa; Describe the concepts of interdependence and infrastructure to explain the relationships between individual firms and the service industries of transport, marketing, banking, insurance, accounting and communication. 2. The concept of productivity and how it can be improved when they: Apply the concepts of specialisation, division of labour, investment and economies and diseconomies of scale in the use of resources for production; Describe how increasing, diminishing and constant returns affect productivity. THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES Students will develop knowledge, skills and understanding by: 3. Factors influencing the market supply of goods and services when they: (d) Define market supply; Construct a market supply curve; Identify causes (determinants of supply) for a change in supply; Predict and illustrate how these changes will affect the supply curve. 78 Business Studies Secondary Curriculum Statement

79 Year12 Economics 5. CONSUMPTION THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES Students will develop knowledge, skills and understanding by: 1. Factors influencing the market demand for goods and services when they: (d) Define market demand; Construct a market demand curve; Identify causes (determinants of demand) for changes in demand; Predict and illustrate how determinants of demand affect the demand curve. 6. THE MARKET THE INTERACTION OF HOUSEHOLDS AND FIRMS IN THE MARKET Students will investigate and develop skills and understanding of: 1. The Circular Flow diagram when they: Identify the relationship of major sectors in the economy - households, producers, government, financial sectors and the overseas sector; (d) (e) Construct and interpret a circular flow diagram to show the inter-dependence of the major sectors in the economy; Define and distinguish between the concepts of GNI, GNE and GDP as measures of circular flows; Recognise and classify different markets - goods and services market, the factor market (Cheques, EFTPOS, credit card payments), money market and the overseas market; Identify different markets in Sämoa. Business Studies Secondary Curriculum Statement 79

80 Year13 Economics 2. The role of money in the economy when they: Recall the functions, characteristics and forms of money; Recognise the role of money and the effect of inflation on purchasing power. 3. The market equilibrium when they: (d) (e) identify market equilibrium and situations of excess supply and excess demand; explain and predict changes in equilibrium price and quantity using supply and demand analysis; analyse the effect of price controls, taxes and subsidies on market equilibrium; compare and contrast price and non-price competition; describe the effects of price and non-price competition on consumers and producers. 80 Business Studies Secondary Curriculum Statement

81 Year13 Economics 4. PRODUCTION THE DIVERSITY AND GOALS OF PRODUCERS Students will investigate and develop skills and understanding of: 1 The role of government in the economy when they: Describe the structure of the Sämoan government; Identify and explain the major functions of government; Investigate the economic aims of governments. 2. The main economic issues faced by government when they: (d) Identify and describe economic issues governments commonly face; Investigate different measures and policies developed by governments to address economic issues of employment, growth, trade, inflation and inequality (Include types and principles of taxation when looking at different measures developed by governments.) ; Analyse how government measures and policies impact on different economic issues; Categorise the measures used as monetary, fiscal or other. THE CONCEPTS RELATED TO MAKING ECONOMIC CHOICES Students will investigate and develop skills and understanding of: 3. Economic concepts applicable to international trade when they: (d) (e) Explain the relationship of specialisation and exchange to international trade; Distinguish between absolute and comparative advantage; Use simple mathematical examples to illustrate comparative advantage by calculating opportunity cost; Distinguish between terms of trade and gains of trade; Use simple mathematical examples to illustrate gains from trade following specialisation. 4. The importance of markets when they: Recall and distinguish between different types of markets which exist in the economy, such as goods and services and factor markets; Identify and describe features of different market structures of perfect and imperfect competition. Business Studies Secondary Curriculum Statement 81

82 Year13 Economics 2. CONSUMPTION THE CONCEPTS RELATED TO MAKING ECONOMIC DECISIONS Students will investigate and develop skills and understanding of: 1. How government earns and spends its income when they: Identify and describe the major sources of government revenue; Identify and describe the major areas of government expenditure; Investigate the components and aims of a government budget. 3. THE MARKET THE INTERACTION OF HOUSEHOLDS AND FIRMS IN THE MARKET Students will investigate and develop skills and understanding of: 1. The supply of money and its components when they: (d) (e) Recall the functions and characteristics of money; Describe the common measures and components of the money supply; Investigate the functions of central banks, commercial banks and development banks; Explain the quantity theory of money (MV=PT) and use it to illustrate the relationship between the supply of money and prices; Describe the separate effect that these factors will have on the supply of money: government borrowing from the public, overseas and the central bank, foreign aid, remittances and increased lending by commercial banks. 82 Business Studies Secondary Curriculum Statement

83 Year13 Economics THE INTERACTIONS BETWEEN THE DIFFERENT SECTORS IN THE ECONOMY Students will investigate and develop skills and understanding of: 2. Inflation and its effect on the economy when they: Identify the common causes and effects of inflation (Include changes in the money supply, demand pull, cost push, government deficit, imported inflation, inflationary expectations, national disasters and wage increases.); Calculate the rate of inflation from published consumer price index (CPI) figures and describe the trend over time; Describe the procedures used to construct the CPI. 3. International trade performance when they: (d) (e) (f) (g) Identify and distinguish between the components of Balance of Payments (Balance of visibles (trade), balance of invisibles, current account, capital account, foreign reserves.) ; Discuss the economic effect of a surplus or deficit of the Current Account; Explain the reasons and effects of trade restrictions through quotas, tariffs, subsidies and embargoes (Include economic effect of embargoes imposed for non-economic reasons.) ; Identify Sämoa's trade commodities and trends in its trading patterns; Identify Sämoa's major trading partners and their relative importance; Identify and discuss current problems faced by Sämoa in developing its trade; Describe the important role of marketing agencies and boards. Business Studies Secondary Curriculum Statement 83

84 Year13 Economics 4. The relationship between international trade and exchange rates when they: Describe and distinguish between managed, fixed and floating exchange rates; Investigate and explain reasons for appreciation / depreciation and revaluation / devaluation of the exchange rate; (d) (e) Explain the effects of revaluation and devaluation and appreciation and depreciation on exports, imports and Balance of Payments; Distinguish between weak and strong international currencies; Calculate foreign exchange rates. 5. The characteristics of the economy of developed and developing countries when they: Identify and describe characteristics of the economy for developed and developing countries; Compare and contrast characteristics of the economy for developed and developing countries(refer to the PSSC prescription Section V to identify characteristics required to be included in the teaching). Recognise the importance of foreign aid and foreign investment to Sämoa's economy. 6. The recent developments in Sämoa's economy when they: (d) (e) Identify the major components of national income and expenditure of the economy of Sämoa; Describe recent trends in the economy of Sämoa; Recognise and discuss measures adopted by the government of Sämoa to develop the economy; Identify international agencies which aid development in the economy of Sämoa (incl. IMF); Evaluate the contributions made by international agencies to aid development in the economy of Sämoa. 84 Business Studies Secondary Curriculum Statement

85 GLOSSARY Accounting The process of identifying, measuring, recording and communicating economic transactions. Transactions are measured in monetary terms and the accountant will prepare records in the form of financial statements. Accounting entity A unit for which accounting records are maintained and for which financial statements are prepared. Accounting equation This is expressed as: Assets = Liabilities + Proprietorship (or Capital). An increase of decrease in the total assets of a concern must be accompanied by an equal increase or decrease in the liabilities and proprietorship in order to ensure a balance sheet will always balance. Balance sheet A statement of the total assets and liabilities of an organisation at a particular date, usually the last day of the accounting period. Bank reconciliation statement A statement that reconciles (adjusts) the bank balance in the books of an organisation with the bank statement. Differences between the bank account in the books and the bank statement may be due to cheques drawn by the organisations but not yet presented to the bank, bank charges deducted from the account not yet notified to the organisation, and payments made to the bank but not yet recorded by the organisation. Bank statement A record of an account produced by a bank, usually at regular intervals and sent to the customer. It gives a summary of the account transactions that have occurred during the period, for example, cheques drawn and received, cash withdrawn and paid in, automatic payments and bank charges deducted, etc. Borrow When individuals or businesses with insufficient money use money made available by those who have excess money. Budget (Accounting) An estimate of income and expenses for a particular period of time. It provides a plan for spending in an attempt to satisfy as many wants as possible and satisfy those wants in the right priority. Budget (Economics) Estimates for the government s income and expenditure, together with the tax rates and the fiscal policies designed to meet the government s financial goals for the succeeding fiscal year. Cash Journals The cash receipts journal records receipts of cash into an organisation s bank account. The cash payments journal records payments of cash from an organisation s bank account. Chain of production Stages or steps in the process whereby labour, natural resources, capital assets and knowledge are applied to provide goods and services. Chart of accounts A detailed listing of all the accounts used by an organisation showing classifications to indicate features of the account. Business Studies Secondary Curriculum Statement 85

86 Cheque A pre-printed form on which instructions are given to an account holder to pay a stated sum to a named recipient. Choice Alternative or other option available. Circular flow diagram A diagram which shows the link between income, expenditure and production that occurs in the economy. Spending (expenditure) motivates or induces firms to produce goods and services (production) from which profits result and wages are paid (income). Clubs and societies Clubs and societies are community organisations formed by people with a common interest in such things as sports, youth activities, choir, etc. Company A corporate enterprise that has a legal identity separate from that of its members. Competition Contest for the command of the scarce resources where different sellers are operating to attract customers. Competition is a central element of capitalist or free-enterprise economic systems. If wants exceed resources then competition for those resources will occur. Competition occurs when different sellers work to attract customers or when different groups compete for government funds. Conserving To protect or safeguard so that the resources to avoid extinction or shortages. Contract A legally binding agreement. Agreement arises as a result of an offer and an acceptance. In general, no particular formality is required for the creation of a valid contract. It may be oral, written, partly oral and partly written, or even implied from conduct. Credit Credit enables consumers and businesses to buy now and pay later. This is a general term or describes other means of deferred payment where interest is charged on an amount borrowed. Credit entry An entry of the right-hand side of an account, representing an increase in a liability, revenue or equity item or a decrease in an asset or expense. Credit transaction A transaction whereby goods are sold or purchased and a promise is made to make payment later. Demand The quantity which buyers are willing to purchase of a particular good or service at a given price at a given point in time, all other things being equal. It is assumed that consumers, being self-interested, will demand more of a product at a lower price and less at a higher price. Demand curve A graphical representation of the Law of Demand. It describes a curve that shows the amount of goods consumers are willing to buy at various prices. It slopes downwards from left to right reflecting the inverse relationship between the quantity demanded and price. The cheaper the good, the more that will be demanded. The more expensive, the less will be demanded. Demand schedule List of quantities of goods and services demanded at different prices. The quantity demanded decreases as prices increase, and increases as prices decrease. 86 Business Studies Secondary Curriculum Statement

87 Determinants of supply Factors which cause changes in the supply curve. Dividends The distribution of the company s earnings to the shareholders. Documentation Written evidence of a transaction. Documents Written records. Drawings Assets withdrawn from a business by its owner. Economic system The way people and their interactions are organised to produce goods and services to meet needs and wants within a political or geographical area. Economics The study of how we use our limited resources to satisfy our unlimited wants. Economics investigates the basic choices or decisions that must be made. Firstly, what to produce what type of goods and services, and what quantities, can be produced with available resources. Secondly, how to produce how resources are combined, choosing what techniques or methods of production to use. Finally, for whom to produce how goods and services produced will be distributed. Unlimited wants and limited resources mean decisions have to be made: economics studies those choices and decisions and all the issues and problems that arise. Elements Basic essential features. Entity An organisation for which the annual report and accounts is prepared. For most accounting purposes it is regarded as a corporation, partnership or an incorporated association carrying on trade or business with or without a view to make a profit. Essential Necessary or something that is required or needed. Evidence Proof that an event occurred. Exchange Buying and selling goods and services which involves money transactions but can also involve bartering of goods for other goods. Exchange rates The price of one currency against another e.g., NZ$1 is worth ST$1.45. Exchange rates may vary over time. Expenditure (Accounting) The costs or expenses incurred by an organisation. Expenditure (Economics) Exchange of money for a good or service. It can be an aggregate of all spending in an economy (national expenditure) or spending by specific sectors of the economy, such as consumers, investors and government. Factor market Markets where factors of production are bought and sold e.g., the factor market for labour consists of the prospective buyers of labour (employers) and people selling their labour (employees). Factors of production Resources available to produce goods and services. Natural resources (e.g., land), labour, capital and enterprise or entrepreneurship are usually identified as the factors of production. Business Studies Secondary Curriculum Statement 87

88 Financial sectors Part of the economy made up of institutions engaged in borrowing and lending activities and the management and investment of financial assets. The financial sector is made up of banks, insurance companies, funds managers, pension and superannuation funds, building societies, credit unions, brokers and financial planners. Firm An institution or economic unit, large or small, that uses the factors of production to produce goods and services and engage in profit-seeking activity. Firms bring together the economic resources of labour and capital. The term is often used interchangeably with enterprise or company (though company has a specific legal meaning). General Journal The journal used to record opening entries at the commencement of a business or on the setting up of a new double-entry accounting system; sales or purchases on credit of assets other than trading stocks; writing off, as bad debts, debtors who fail to pay; withdrawal by the proprietor other than in cash; entries for the correction of errors; adjusting and closing entries for the calculation of profit and preparation of the final accounting reports. Goods Journals This includes the Sales Journal which records the credit sale of goods; Sales Returns Journal (Returns Inwards Journal) which records the return of goods which had been sold by the business; Purchases Journals which records the credit purchase of goods; Purchase Returns Journal (Returns Outwards Journal) which is used to record the return of goods which had been bought by the business. Households An economic unit made up of one or more individuals living together and engaging in economic activity e.g., providing labour and other productive services and engaging in consumption. Income (Economics) The money a person has available to spend. The return to the factors of production for their contribution to the productive process. Inflation General price increases. It refers to ongoing price rises generally, rather than a few prices rising or a one-off increase in prices. Insurance Financial cover and safeguard or protection for events that may occur in the future. Interdependence When consumers and organisations rely on others for necessary goods and services in order to survive or achieve their business objectives. Journals The books of first entry. Used to record transactions from the source documents. Law of Demand The Law of Demand states the relationship between price and quantity demanded. As prices increase, the level of demand decreases (all other things being equal - ceteris paribus ). Law of Supply The Law of Supply states the relationship between price and quantity supplied. As prices increase, the level of supply increases (all things being equal - ceteris paribus ). Ledger account An account is a systematic listing of all the changes in an item so that a balance can be found. 88 Business Studies Secondary Curriculum Statement

89 Limited liability companies A company in which the liability of the members in respect to the company debts is limited. Market An organisation or arrangement through which goods and services are exchanged. Simply, it is where buyers and sellers get together to do business. A market does not have to be in a single location, it doesn t have to be face-to-face, and it can be either highly organised or very informal. Market demand curve It describes a curve that shows the total quantities of goods and services that will be demanded at each price by all consumers. Market equilibrium This occurs at a point where the quantity demanded equals the quantity supplied. Market supply The total quantities of goods and services that will be supplied at each price. Marketing strategy A plan for the promotion and sale of a particular product. National resources Resources that are available in any one nation or country. Needs Things that are necessary to survival e.g., food, clothing and shelter. Non-financial information Information of a non-monetary nature e.g., location of a business is relevant to who its customers will be. Non-profit organisation Any organisation that operates to provide a service on a non-profit basis. Non-renewable resources Resources that cannot be replaced or renewed after use. These resources are fixed in quantity e.g., minerals, fossil fuels and metals which can be discovered and used but cannot be renewed or regenerated. Obligations Responsibilities or duties imposed or taken on with a particular role. Opportunity cost The cost of one choice in terms of what has been forgone. Opportunity cost is one of the fundamental concepts of economics. Scarcity means we cannot have everything, so what we choose not to do or not to buy is the opportunity cost of what we choose to do or buy. If you choose to go to the movies instead of watching a rugby game then the opportunity cost of going to the movies is the enjoyment of the rugby match. If you buy an ice cream instead of soft drink then the opportunity cost of the ice cream is the soft drink. Organisation Institution or economic unit. Overseas market An overseas organisation or arrangement through which goods and services are exchanged. Overseas sector This sector refers to a country s international trading and financial transactions with the rest of the world. Business Studies Secondary Curriculum Statement 89

90 Petty cash The amount of cash that an organisation keeps in notes or coins on its premises to pay small items of expense. Petty cash transactions are normally recorded in a petty cash book, the balance of which should agree with the amounts of petty cash held at any given time. Price controls Where the government regulates price increases. The government can set guidelines for wage increases. It can revaluate or devalue the exchange rate which can affect prices of goods and services and ultimately affect supply and demand. Primary production The process involving the extraction of raw materials and the provision of agricultural crops and animal produce. Principle A fundamental belief or standard. Private sector That sector which provides goods and services that are sold for profit. This sector of the economy is characterised by private ownership of the means of production by profit-seeking individuals. It is owned and run by private individuals, firms, and organisations. This sector contrasts with the public sector which, rather than being motivated by profit, provides goods and services that are said to be for the common good e.g., public health and education. Procedure A stated or planned way of doing something within an organisation or business. Production The process whereby labour, natural resources, capital assets and knowledge are applied to the provision of goods and services. The factors of production are converted into goods and services. Purchasing power The goods and services your money will actually buy. If prices increase, then the purchasing power of a given amount of money will fall. Recycling Reprocessing of used resources for future use. Renewable resources Resources that can be renewed, regenerated or replaced. Thus they can be used, renewed and used again e.g., forests which can be replanted. Overuse can exhaust a renewable resource e.g.,over-fishing can use up the supply of fish in one area for good. Resources Means of supplying a want, stock that can be drawn on. A nation s collective means for support and defence. Revenue Earnings or receipts from a business activity. Any form of income. Revenue statement A revenue statement combines the trading account and profit and loss account. It is prepared to match the expenditure of a business against the revenue earned by it for the a specific financial period, to find the net profit or net loss. Role The part or function or what one is appointed or expected to do. Rural Country or outside the main town or city. 90 Business Studies Secondary Curriculum Statement

91 Scarcity A situation where unlimited wants exist but the resources available to meet them are limited. This means choices must be made among alternatives. Nearly all goods and services are scarce except some goods in extreme abundance e.g., air and water, though in some cases where there is pollution or a drought even these can be considered scarce. Secondary production The process involving the transformation of raw materials into other products, either for further transformation or for sale e.g., the manufacture of tyres for use in vehicle manufacture or for sale to the public. Sectors of the economy Parts of the economy or units of organisations that engage in economic activity. The basic circular flow model of the economy distinguishes the major sectors of the economy as households, firms, government, overseas and financial sectors. Service industries That group of firms which provide benefits to consumers which are not physical e.g., transport is a service industry. Services market An organisation or arrangement through which service industries offer and buy their businesses. Single proprietorship A business that is owned by one person see sole trader. Small business A sole trader or partnership business which has limited business operations and relatively small capital investment. Sole trader Also known as a sole proprietor. A business that is entirely owned by a single owner. The owner bears the full responsibility and risk for their business. They receive all the profits and are responsible for any losses. Source documents These are documents used as a record and evidence of a transaction. Specialisation When productive resources are used for a particular narrow purpose. Exchange must take place, as no one in a specialisation situation is selfsufficient. Specialisation of land sees land devoted to a particular use, and specialisation of labour occurs when people undertake a specific occupation or perform a narrow range of tasks in the production process. Nations can specialise by engaging in the production of goods and services they are best at and then engaging in trade with other nations. Spending power The goods and services that a consumer can buy with the money s/he has to spend. Subsidiary Ledgers Subsidiary ledgers are the Accounts Receivable Ledger which groups together the ledger accounts for accounts receivable (debtors) and the Accounts Payable Ledger which groups together the ledger accounts for accounts payable (creditors). Subsidies Financial assistance made by governments to enterprises e.g., payments to exporters to help cover their costs (export subsidiaries) or payments to local producers to assist in their expansion. Business Studies Secondary Curriculum Statement 91

92 Supply Curve A graphical representation of the Law of Supply. It describes a curve that shows the amount of goods sellers are willing to supply at various prices. It slopes upwards from left to right reflecting the direct relationship between the quantity supplied and price. The cheaper the good, the less will be supplied and the more expensive the good, the more will be supplied. Supply Schedule The list of quantities of goods and services supplied at different prices. The quantity supplied decreases as price decreases and increases as price increases. Taxation Compulsory levy imposed by the government. Taxes raise revenue for the government and may act as a means of redistributing income. Taxes see taxation Tertiary production The process involved in the distribution of goods and provisions of services. Transaction An external event (e.g. sale of purchase) or internal event (e.g., depreciation of an asset) that causes a change in the operations or finances of a business. Trial Balance The listing of the balances of all the accounts of an organisation with debit balances in one column and credit balances in the other. If the processes of double-entry bookkeeping have been accurate, the totals of each column should be the same. Urban From the city or town area. VAGST Value added goods and services tax. The name given for a uniform sales tax system that applies to all (or nearly all) goods and services. The value added tax is collected at the different stages of the production process and is levied only on the value added at each stage of production. Value What something is worth in terms of something else. Wants Things that consumers would like to have. In economics, wants are considered to be unlimited, as people will always desire more and more goods and services. 92 Business Studies Secondary Curriculum Statement