Accounting

At Hurtwood House Accounting is a popular and highly successful A-level subject, one that is recognised as being truly "hands on" for the student, because it deals with the practicalities of business analysis and decision-making that is essential to any company. However, financial record keeping is not something that today is confined just to the business sector. We all, at some point in our lives, are faced with the need to prepare, present and understand accounts, either on a personal level, such as for the Tax Inspector, the Bank Manager or the Building Society, or professionally, such as the accounts of a business organisation, be they for a sole trader or a public limited company. Also, we will no doubt be involved at some time in our lives with the accounts of a club or society to which we may belong, the local tennis club, or a charity such as Oxfam.

How Accounting is taught at Hurtwood House

Students receive a good deal of individual attention, for here is a subject that often demands the one-to-one approach , rather than a group effort. Teaching is highly structured, based around the introduction of a topic by a tutor, with students then working on assignments (usually past exam questions). Students have their own ledgers, in which they put into practice what they have been taught when the topic was introduced. This practice is when a student’s ability is developed with the tutor explaining, either individually or to the group as a whole, the correct solution to the assignment. At the end of their course, students have an impressive record of work in their ledgers, which will not only help them to revise for their A-level examination, but will also be useful when studying for a degree.

Specification

At Hurtwood House students who take Accounting gain an appreciation of Accounting theory, learn how to record the transactions of a business and develop the ability to analyse financial data so as to help management make the correct decisions.

AS level

Unit 1 - The Accounting Information System

Topics include accounting records, subsidiary books, ledger accounts, ledger control accounts, suspense accounts, trading and profit and loss accounts, balance sheets.

Unit 2 – Determination of Income

Topics include accounting principles, stock valuation, depreciation, capital structure of limited companies, balance sheets of limited companies.

Unit 3 – Introduction to Accounting for Management and Decision-making

Topics include profitability and liquidity, limitations of accounting statements, ratio analysis, contribution, break-even analysis, social accounting.

A2

Unit 4- Further Aspects of Financial Accounting

Topics include incomplete records, end of year financial statements for partnerships, valuation of assets, sources of finance

 

Unit 5 – Published Accounts of Limited companies and Accounting Standards

Topics include published accounts and ratios, cash-flow statements, accounting standards, limitations of published accounts

 

Unit 6 – Further Aspects of Accounting for Management and Decision-making

Topics include absorption costing, marginal costing, overhead absorption rates, standard costing, variances.

What skills do I need?

Accounting is a subject that will appeal to students who delight in being given information on a business, and from this preparing solutions - whether it be structured (as in the presentation of a balance sheet) or unstructured (as in giving a report on the performance of a business). It may involve the student in deciding which particular piece of machinery a company should buy, or indeed whether to purchase outright, lease or hire. From the information provided, the accounting student can answer questions such as "Should a product be discontinued?" or "How much should be charged for a product?" or "Which areas are causing a business to be unprofitable?".

Although it deals with numbers, Accounting is not a mathematical subject. The calculations involved are no more than the basics of arithmetic, such as adding and subtracting. For example, adding income and deducting costs to arrive at a profit figure. However, having arrived at a profit figure it must then be decided whether it is high enough. Questions such as"What do other business make?" have to be answered, and it may be queried as to whether it is better to have a higher profit on a low turnover, or vice-versa. There is much more to the subject than just playing with numbers. There are quantitative techniques involved here that help to lead to decision-making. Accounting is also distinguished from Economics - which deals with concepts and covers the operation of the whole of the British Economy and Business Studies - which concentrates more on corporate structure and the sale and marketing of products.

Accounting – a student’s view.

"Accounting is not about Mathematics, but it is about business. It is very closely connected to the business world and the impact which finance has on various companies. If you are interested in pursuing a business-based course at University then here is a subject that you will find highly interesting and rewarding. I am leaving Hurtwood this year with a firm understanding of the structure of Accounting and a much deeper understanding of business in general. Our Head of Department, Graham Highfield, explained the subject in a clear and careful way which made it easy to follow topics and see the links between them."

Luke Nolan – Second Year A-Level student.