Unit AF301: Financial Transactions Record-keeping

Unit code: F/650/2367

RQF Level: 3

Unit Aim

The aim of this unit for learners to be able to understand how to record financial transactions accurately and completely. The unit also covers how income and expenditure is classified and managed.

Learning Outcomes and Assessment Criteria

Learning Outcomes: When awarded credit for this unit, a learner will:	Assessment Criteria: Assessment of this learning outcome will require a learner to demonstrate that they can:
1. Understand why financial transactions need to be recorded.	1.1 Explain the reasons that businesses need to record financial transactions. 1.2 Explain the ways in which the recording of financial transactions meets the needs of a business’s internal and external stakeholders.
2. Be able to prepare source documents and Books of Prime (Original) Entry to record financial transactions.	2.1 Describe the features and uses of Books of Prime (Original) Entry. 2.2 Prepare principal source documents and Books of Prime (Original) Entry for financial transactions correctly.
3. Understand the classification and management of income and expenditure.	3.1 Distinguish capital from revenue expenditure and income. 3.2 Explain the accounting approaches that are used for items of capital and revenue expenditure and income. 3.3 Assess the impact on profit and asset valuations of the incorrect management of capital and revenue expenditure and income.