Page 41 - Business Studies 11-12 (2006)

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THE ONTARIO CURRICULUM, GRADES 11 AND 12: BUSINESS STUDIES
Accounting Practices for Assets
Overall Expectations
By the end of this course, students will:
• demonstrate an understanding of accounting procedures for short-term assets; • analyse accounting procedures for inventories;
• demonstrate an understanding of methods of accounting for capital assets.
Specific Expectations
Short-Term Assets
By the end of this course, students will:
– record transactions for different terms of sales (e.g., sales on account, credit card sales, debit card sales);
– record transactions related to accounts receivable, including doubtful accounts, write-offs, and recoveries;
– explain the accounting procedures for notes receivable.
Inventory Procedures
By the end of this course, students will:
– compare the characteristics of the periodic and perpetual inventory systems;
– describe and apply different methods of inventory valuation, including average cost; first-in, first-out; last-in, first-out; and specific identification;
– explain the effects of each method of inventory valuation on financial statements;
– explain the effects of an error in valuing inventory on financial statements;
– analyse the role of technology in the management and control of inventory;
– explain the role of internal controls (e.g., paper trails, numbered documents, authorization).
Capital Assets
By the end of this course, students will:
– distinguish between capital expenditures and revenue expenditures;
– identify the elements used in determining the cost of plant and equipment, natural resources, and intangibles;
– record transactions related to amortiza- tion and depletion of tangible assets (e.g., straight-line, declining balance, units of output, revisions, disposals);
– record transactions related to intangible assets (e.g., goodwill, patents, trademarks, copyright);
– analyse methods of amortization (e.g., straight-line, declining balance, units of output) and their effects on financial statements.