Accounting Basics at AAT Level II
AAT Level 2 is an introductory level to the accountancy industry, designed to familiarise students with basic accounting practices. This level also offers a basic, fundamental understanding of the discipline, and for people wishing to pursue a career in accounting, either already in the field or those wishing to begin working in it. Level 2 covers subjects from accounting to business taxation, employing both computerised and manual systems. In order to successfully complete the level, students must demonstrate good application and management skills, along with good reading and writing skills. For this reason, it is a good idea to start with the level as an examination, before proceeding to the next level aat level 2.
Accountancy exams cover a large number of topics, many of which will be familiar to you, such as modules on corporate law, management, money and banking. However, before moving onto these topics, a quick review of some of the more popular chapters in accountancy theory, which cover concepts such as cost accounting, cash flow, profit and loss, banking, information systems, public finance and much more. These concepts should be familiar to you from your school education, so it is not a bad idea to review these topics while you are studying. The exams themselves are generally short tests, just a couple of minutes long, and they must be passed within a certain time-frame in order to achieve a certificate.
There are several different types of examinations for accountants at level 2, and many of these examinations will be based on the information covered in the previous modules aat level 3. This means that a simple review of what you have already studied will be useful for you when preparing for the exam. You will find that there are four main sets of examinations, each based on a different aspect of accounting. The first set, called Exam A, covers general accounting, including working knowledge of accounting principles. Exam B covers more specific areas, such as using modules like the International Financial Reporting Standards (IFRS), the IFAS Guide, and the CPA exam. The final set of examinations, known as Exam E, focuses on managerial and business accounting, including modules focusing on auditing, consolidation, and prevention.
After passing the exam you will be awarded an A grade and will qualify for a certificate. This certificate will then be needed by most business and accountancy organizations to qualify for further Aat qualification. At level 2, a certified accountant will need to demonstrate that he/she has the ability to follow instructions in the daily running of an account. Some of the subjects you will need to study for at this level include reading financial statements, preparing the daily work book, and undertaking basic spreadsheet functions.
At level 2, you will also need to learn about modules focusing on auditing, which includes recording and interpreting accounting transactions. This section will teach you how to record data correctly, as well as how to effectively manage accounting transactions. If you wish to apply for certification at this level, you will need to complete a module focused on journaling. The final portion of your at level 2 exams will cover modules focused on consolidating your books and records. At this point you must demonstrate your understanding of how to effectively use the double entry system to ensure proper accountancy records are maintained.
The accounting modules you will need to pass the second aat qualification exam include modules focusing on writing financial documents, entering information, understanding journals, managing ledger records, and utilizing modules that focus on balance sheets. You will need to know how to read and write graphs, line items, and pie charts. Auditing involves the process of looking for weaknesses in an organization’s method of recording and analyzing financial transactions. At the end of your course, you will have gained enough knowledge to pass the second aat qualification.