Foundation Accounting and Economics Unit Reference Number
M/617/3719
Unit Title
Foundation Accounting and Economics
Unit Level
3
Number of Credits
20
Total Qualification Time
200
Mandatory / Optional
Mandatory
Unit Grading Structure
Pass
Unit Aims This module provides an introduction to the fundamentals of accounting and economics. Learners will gain an understanding of financial reports through their preparation, based on the double-entry bookkeeping system which is essential for the management of any organisation. The unit will also develop learners’ understanding of how economic issues affect choices about resources and markets and how consumers, producers and governments interact in markets nationally and internationally. Learning Outcomes and Assessment Criteria Learning Outcomes- The learner will:
Assessment Criteria- The learner can:
1. Understand the essentials of accounting and economics.
1.1 Describe the differences between an accountant and an economist. 1.2 Explain commonly used accounting terms. 1.3 Explain the difference between macro and micro economics. 1.4 Explain a range of common economic concepts. 1.5 Discuss the factors that influence supply and demand and associated concepts.
2. Understand the nature of markets and how they operate.
2.1 Identify the types of markets that exist. 2.2 Explain the factors that determine the structure of markets. 2.3 Explain how competition affects market structures. 2.4 Describe the factors that lead to economic growth in markets.
3. Understand different factors within the realm of accounting and economics.
3.1 Identify the different measures of money. 3.2 Explain how monetary and fiscal policies are used by governments. 3.3 Describe how interest rates are used by governments. 3.4 Explain the economic impacts of inflation.
4. Demonstrate the ability to apply key accounting concepts.
4.1 Prepare simple accounting statements using double entry system. 4.2 Explain how to prepare financial statements. Prepare a financial statement. 4.3 Explain how period end adjustments are incorporated within financial statements.
Indicative content Learning outcome 1
Introducing the terms ‘Economics’ and ‘Accounting’ Types of Economic system London School of International Business| www.LSIB.co.uk
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