FOUNDATION ACCOUNTING AND ECONOMICS

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.

2. Understand the nature of markets and how they operate.

3. Understand different factors within the realm of accounting and economics. 1.1 Describe the differences between an accountantand 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. 2.1 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 growthin markets. 3.1 Identify the different measures of money. 3.2 Explain how monetary and fiscal policies areused 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 usingdouble entry system. 4.2 Explain how to prepare financial statements. Prepare a financial statement. 4.3 Explain how period end adjustments are incorporated within financialstatements.

Indicative content Learning outcome 1

 Introducing the terms ‘Economics’ and ‘Accounting’  Types of Economic system

 Concepts and conventions in accounting  How markets work in reality  The role of price in reconciling supply and demand

Learning outcome 2  Behaviour of buyers and sellers in markets  Factors that affect market structures  Importance of competition

Learning outcome 3  Micro and macro economics  National Economics  The banking system  The role of currencies in affecting international trade  Currency exchange rate fluctuations  Globalisation and its drivers

Learning Outcome 4  Bookkeeping  Period end adjustments  Accounting estimates  Types of financial statement  Interpretation of financial statements: reasons and methods  Reporting results of interpretation  Preparing financial statements

Assessment

To achieve this unit, learners must achieve the learning outcomes and meet the standards specified by all assessment criteria for the unit.

Learning Outcomes to be met

1-4 All Coursework Based assignment 100% 3000 words excluding numerical data

Assessment criteria to be covered Type of assessment Weighting Word count

(approx. length of coursework)

Indicative Reading list

Gillespie, A. (2015) Foundations of Economics. 3rd Edition, Oxford University Press Scott, P. (2018) Introduction to Accounting. Oxford University Press