VCE Accounting explores the financial recording, reporting, analysis and decision-making processes of a sole proprietor small business. Students study both theoretical and practical aspects of accounting. They collect, record, report and analyse financial data, and report, classify, verify and interpret accounting information, using both manual methods and information and communications technology (ICT). Students apply critical thinking skills to a range of business situations to model alternative outcomes and to provide accounting advice to business owners. In business decision-making, financial as well as ethical considerations (incorporating social and environmental aspects) should be taken into account.
There are no prerequisites for entry to Units 1, 2 and 3, however students are strongly recommended to have completed Units 1 and 2 before undertaking Units 3 and 4. Students must undertake Unit 3 prior to undertaking Unit 4.
UNIT 1 - The role of accounting in business
This unit explores the establishment of a business and the role of accounting in the determination of business success or failure. 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.
Where appropriate, the accounting procedures developed in each area of study should incorporate the application of the IASB’s Conceptual Framework and financial indicators to measure business performance. They should also take into account the ethical considerations, including financial, social and environmental considerations, faced by business owners when making business decisions
LEARNING ACTIVITIES
Case studies, practical exercises, text questions, ICT activities and other relevant tasks.
KEY SKILLS REQUIRED
Use correct accounting terminology; research information from a range of sources; discuss alternative investment opportunities to establishing a business; describe the sources of finance available to a business; distinguish between current and non-current assets, and current and non-current liabilities; discuss factors affecting the level of success or failure of a business; apply and use different methods of price setting; describe and use accounting information presented in written reports and graphical representations to make a judgment on the success or failure of a business; apply theoretical knowledge to actual and simulated situations; discuss ethical considerations faced by business owners when making business decisions, and the financial implications of those choices.
ASSESSED TASKS
Coursework 70%
End of Semester Examination 30%.
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. They use relevant financial and other information to predict, budget and compare the potential effects of alternative strategies on the performance of the business. Using these evaluations, students develop and suggest to the owner strategies to improve business performance.
Where appropriate, the accounting procedures developed in each area of study should incorporate application of the Conceptual Framework, financial indicators and the ethical considerations faced by business owners, including financial, social and environmental considerations, when making business decisions.
LEARNING ACTIVITIES
Case studies, practical exercises, text questions, ICT activities and other relevant tasks
KEY SKILLS REQUIRED
Use correct accounting terminology; explain and apply relevant qualitative characteristics and accounting assumptions; identify, classify and record financial data; manually record transactions in the special journals and inventory cards; use ICT, including spreadsheets, to record transactions and construct appropriate graphical representations in relation to inventory; distinguish between current and non-current assets, and current and non-current liabilities; prepare historical and budgeted accounting reports for a trading business using manual methods and ICT; apply theoretical knowledge to simulated situations; model potential outcomes of different options, analyse the results and provide advice; discuss the ethical considerations faced by business owners when making decisions in relation to inventory; discuss the effects of alternative inventory management strategies on the performance of the business.
ASSESSED TASKS
Coursework 70%
End of Semester Examination 30%
Prerequisites:
N/A
Recommendations:
It is recommended that the student have an overall average score of 65% in any English.
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