VCE Accounting

What is VCE Accounting?

VCE Accounting explores the financial recording, reporting, analysis and decision-making processes of small business. Students will collect, record, report and analyse financial data, and report, classify, verify and interpret accounting information, using both manual methods and Excel spreadsheets.

In this subject, students will 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 should be taken into account.

Studying Accounting puts you in a strong position to make the most of an exciting future in a wide range of businesses. You will develop life skills in relation to your own financial literacy, including budgeting, keeping personal financial records, making informed financial decisions, and reading and understanding financial data.

Why choose VCE Accounting?

Students would choose to study VCE Accounting if they:

Are interested to pursuing further study in Commerce/Business Studies at Uni or TAFE.
Aim to start and run their own business
Want to improve their financial literacy
Love money!

A common misconception is that to study Accounting you need to be ‘good at maths’. This is not true. There are no complex calculations or formulas to use, but you must be comfortable with numbers. Students who study Accounting apply a methodical, process-based approach to completing practical tasks, which allows for answers to be either ‘right’ or ‘wrong’ in a similar manner to mathematics subjects.

Students also can demonstrate creative thinking methods through providing advice and strategies to improve a business’s performance. Students also need to discuss non-financial implications of decisions, such as environmental issues and effects on society.

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. 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.

Areas of Study:

1. The role of accounting

2. Recording financial data and reporting accounting information for a service business

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.

Areas of Study:

1. Accounting for Inventory

2. Accounting for and managing Accounts Receivable and Accounts Payable

3. Accounting for and managing 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.

Areas of Study:

1. Recording and analysing financial data

2. Preparing and interpreting accounting reports

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.

Areas of Study:

1. Extension of recording and reporting

2. Budgeting and decision-making

Who do I contact to find out more?

Mrs Benita Arnott: barnott@cmc.vic.edu.au

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