Question 1

What is NCEA AS 91176 about?

Accepted Answer

This standard asks you to process accounting information and create financial statements for a business that uses multiple accounting systems (like separate records for cash, inventory, sales, etc.). You'll work with adjustments to accounts—like depreciation or bad debts—and prepare reports showing a company's income, financial position, and cash movements. The key skill is turning raw accounting data into polished, complete financial documents that a business owner can understand and use to make decisions.

Question 2

What do students need to do for AS 91176?

Accepted Answer

1. Prepare general journal entries and/or general ledger entries for adjustments (like depreciation, bad debts, inventory write-downs) and closing entries 2. Calculate figures for adjustments when they are not given to you directly (for Merit level and above) 3. Prepare complete financial statements—including an Income Statement, Statement of Financial Position with notes, and/or Statement of Cash Flows 4. Work with cash-related information, distinguishing between cash movements and accrual accounting entries (including cash from customers, cash to suppliers, discounts, and bad debts) 5. Use correct account names, formal formatting, and proper financial statement layout as set out in the Level 2 Appendix

Question 3

What's the difference between Achieved, Merit, and Excellence for AS 91176?

Accepted Answer

Achieved: You provide basic financial statements with adjustments where the figures are already given to you, using correct account names and proper statement layout. Merit: You perform calculations to work out adjustment figures (like calculating depreciation or cash received from customers), integrate them into your statements, and show clear working. Excellence: You handle complex, multi-step calculations for adjustments (such as cash from customers accounting for discounts and bad debts), prepare comprehensive notes to statements, and demonstrate full understanding of how each adjustment affects both the Income Statement and Statement of Financial Position.

Question 4

What mistakes do students typically make in AS 91176?

Accepted Answer

1. Using informal language and abbreviations instead of proper accounting terminology and full account names (e.g., 'AP' instead of 'Accounts Payable'); examiners expect formal accounting language 2. Not reading the resource material or business context carefully, leading to preparing statements for the wrong entity or missing key adjustment information 3. Forgetting to use correct statement templates and layout as shown in the Level 2 Appendix, or not presenting financial statements in a professional format

Financial statements

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