Page 45 - Business Studies 11-12 (2006)

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THE ONTARIO CURRICULUM, GRADES 11 AND 12: BUSINESS STUDIES
Service and Merchandising Businesses
Overall Expectations
By the end of this course, students will:
• demonstrate accounting skills related to the accounting cycle for a service business;
• demonstrate an understanding of inventory systems;
• demonstrate accounting skills related to the accounting cycle for a merchandising business.
Specific Expectations
The Accounting Cycle for a Service Business
By the end of this course, students will:
– describe Generally Accepted Accounting Principles (GAAP) (e.g., business entity principle, cost concepts) and practices (e.g., cash accounting) and apply them to a service business;
– complete the accounting cycle for a ser- vice business, using accounting software;
– compare the closing procedures in manual and computerized accounting systems.
Inventory Systems
By the end of this course, students will:
– describe the accounts particular to inven- tory for a merchandising business;
– describe the appropriate timing and the process for taking physical inventory;
– describe the principles of safeguarding inventory;
– explain the differences between the peri- odic and perpetual inventory methods;
– record the various transactions for a mer- chandising company, using both periodic and perpetual inventory systems;
– calculate inventory turnover and explain its significance;
– prepare inventory accounts using account- ing software.
The Accounting Cycle for a Merchandising Business
By the end of this course, students will:
– apply Generally Accepted Accounting Principles (GAAP) and practices to a merchandising business;
– describe the accounting practices for sales tax that are particular to a merchandising business (e.g., purchases for resale, sales, returns);
– complete the accounting cycle for a mer- chandising business, using accounting software;
– prepare an income statement with a detailed cost of goods sold section;
– prepare a classified balance sheet for a merchandising business.