Edexcel 4AC1
Paper 2: Financial Statements
Edexcel 4AC1 Paper 2 lasts 1 hour 15 minutes and carries 50 marks, which is 33.3% of the qualification.
Structure at a glance
| 4AC1 (linear), Paper 2 | 4XAC1 (modular), Unit 2 | |
|---|---|---|
| Title | Paper 2: Financial Statements (paper code 4AC1/02) | Unit 2: Financial Statements (unit code 4WAC2/01) |
| Duration | 1 hour 15 minutes | 1 hour 15 minutes |
| Marks | 50 marks | 50 marks |
| Weighting | 33.3% of the qualification | 33.3% of the qualification |
| Content | Topic 4 The preparation of financial statements and Topic 5 Accounting for end of period adjustments, building on Topics 1 to 3 | Not stated in this document |
| Questions | Two multi-part questions on the preparation, analysis or evaluation of financial statements | Not stated in this document |
| Assessment objectives | Addresses all three assessment objectives | Not stated in this document |
Sources: Pearson Edexcel International GCSE in Accounting (4AC1) specification (FT Sept 2017) (Issue 1, October 2016), pages 7, 25; Pearson Edexcel International GCSE in Accounting (Modular) specification (FT Sept 2023) (Issue 1, August 2023), page 7. See all sources.
What this paper tests
Paper 2 is the shorter paper. It is 50 marks in 1 hour 15 minutes, a third of the qualification, with two multi-part questions on preparing, analysing or evaluating financial statements. The specification calls it more holistic, because it builds on the knowledge and skills from Topics 1 to 3 as well as Topics 4 and 5.
Content it draws on, with our guide to each part:
How our teachers prepare students for it
With only two questions, each one is a large share of the marks, so there is little room to recover from a misread requirement. Our teachers practise Paper 2 as two back-to-back 35-minute tasks: read, plan the adjustments, set out the layout and then finish with the comment. The specification names sole traders, partnerships, incomplete records, ratios and manufacturers for the statements, so those are where we concentrate.
Because the paper includes interpretation, we practise the profitability and liquidity ratios the specification lists, and insist on a sentence of comment for every figure. A student who can say what a current ratio means for a business in plain English is already ahead.
A suggested time plan (our suggestion)
The board does not set a timetable inside the paper. As a starting point we hold back 5 minutes for checking, which leaves 70 of the 75 minutes for answering, or about 1.40 minutes for each mark. Adjust it to the student: someone who prepares statements quickly may need less time on the layouts and more on the written analysis and evaluation.
| Part of the paper | Marks | Suggested time |
|---|---|---|
| Both multi-part questions together | 50 | 70 minutes |
Computed from the duration and marks above. It is our own rule of thumb, not a board recommendation.
If your child makes these slips under timed conditions, a teacher can mark a timed attempt at this paper and show where the minutes and marks go. Book a trial class.
Related
Edexcel 4AC1 Paper 2: questions
Does Paper 2 include Paper 1 content?
How many questions are there?
What is the modular equivalent?
Practise Paper 2 with a teacher
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