What is Accounting all about?

VCE accounting focuses on the financial recording, reporting and decision-making processes of a small business. Students will study both theoretical and practical aspects of accounting. Financial data and information will be collected, recorded, and reported using both manual and information and communications technology (ICT) methods.

Aims
This study enables students to:

      • Acquire knowledge and skills to record financial data and report accounting information in a manner that is appropriate for the needs of the user
      • Develop an understanding of the role of accounting in the management and operation of a business
      • Develop skills in the use of ICT in an accounting system
      • Develop an understanding of ethical considerations in relation to business decision-making
      • Develop the capacity to identify, analyse and interpret financial data and accounting information
      • Develop and apply critical-thinking skills to a range of business situations
      • Use financial and other information to improve the accounting decision-making within a business

Structure

The study is made up of four units.

Unit 1: Role of Accounting

This unit explores the establishment of a business and the role of accounting in the determination of business success or failure. In this, it considers the importance of accounting information to stakeholders. Students analyse, interpret and evaluate the performance of the business using financial and non-financial information. They use these evaluations to make recommendations regarding the suitability of a business as an investment. Students record financial data and prepare reports for service businesses owned by sole proprietors.

Unit 2: Accounting and decision-making for a trading business

In this unit students develop their knowledge of the accounting process for sole proprietors operating a trading business, with a focus on inventory, accounts receivable, accounts payable and non-current assets. Students use manual processes and ICT, including spreadsheets, to prepare historical and budgeted accounting reports. Students analyse and evaluate the performance of the business relating to inventory, accounts receivable, accounts payable and non-current assets.

Unit 3: Financial accounting for a trading business

This unit focuses on financial accounting for a trading business owned by a sole proprietor, and highlights the role of accounting as an information system. Students use the double entry system of recording financial data and prepare reports using the accrual basis of accounting and the perpetual method of inventory recording. Students develop their understanding of the accounting processes for recording and reporting and consider the effect of decisions made on the performance of the business. They interpret reports and information presented in a variety of formats and suggest strategies to the owner to improve the performance of the business.

Unit 4: Recording, reporting, budgeting and decision-making

In this unit students further develop their understanding of accounting for a trading business owned by a sole proprietor and the role of accounting as an information system. Students use the double entry system of recording financial data, and prepare reports using the accrual basis of accounting and the perpetual method of inventory recording. Both manual methods and ICT are used to record and report. Students extend their understanding of the recording and reporting process with the inclusion of balance day adjustments and alternative depreciation methods. They investigate both the role and importance of budgeting in decision-making for a business. They analyse and interpret accounting reports and graphical representations to evaluate the performance of a business. From this evaluation, students suggest strategies to business owners to improve business performance.

Entry

There are no prerequisites for entry to Units 1, 2 and 3. Students must undertake Unit 3 prior to undertaking Unit 4.

Assessment

Satisfactory Completion

Demonstrated achievement of the set of outcomes specified for the unit.

Levels of Achievement

Units 1 and 2

School based assessment consisting of coursework, assessment tasks and an exam

Units 3 and 4

  • Unit 3 school-assessed coursework: 25 %
  • Unit 4 school-assessed coursework: 25%
  • End-of-year examination: 50 %