Accounting

Learning Area Leader: Mr De Souza

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 will apply critical thinking skills to a range of business situations to model alternative outcomes and to provide accounting advice to business owners.

Career Paths / Future Directions:

Auditor, Tax accountant, Banking, Financial planning, Advisory, Insurance, Fund manager, Record keeping for business.

Unit 1 – The Role of Accounting in Business (Code: ACCT11)

Description

This unit focuses on the role of accounting in determining the success or failure of a business. Students analyse, interpret and evaluate to make recommendations regarding the suitability of business as an investment.

Outcomes

• Describe the resources required to establish and operate a business, and selected and use accounting reports and other information to discuss the success or otherwise of a business.

• Identify and record the financial data and report and explain accounting information for a sole proprietor of a service business.

• Apply accounting skills to evaluate financial and non-financial information in order to make informed decisions for a small business.

Assessment

• Case studies (Manual and/or ICT-based)

• Tests (Manual and/or ICT-based)

• Structured Questions (Manual and/or ICT-based)

• Report (Manual and/or ICT-based)

Unit 2 – Accounting & Decision-Making for a Trading Business (Code: ACCT22)

Description

This unit focuses on the accounting and financial operations of a sole proprietor trading business. Students will learn to use manual processes and ICT, including spreadsheets, to prepare historical and budgeted accounting reports.

Outcomes

• Record and report for inventory and discuss the effect of relevant financial and non-financial factors, and ethical considerations.

• Managing accounts receivable and accounts payable successfully to ensure adequate cash flow for a business.

• Record and report for non-current assets and depreciation.

Assessment

• Case studies (Manual and/or ICT-based)

• Tests (Manual and/or ICT-based)

• Structured Questions (Manual and/or ICT-based)

• Reports (Manual and/or ICT-based)

• End of year exam on Units 1 and 2

Unit 3 – Financial Accounting for a Trading Business (Code: ACCT33)

Description

This unit focuses on financial accounting for a sole proprietor, and highlights the role of accounting. 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 interpret reports and suggest strategies to the owner to improve the performance of the business.

Outcomes

• Record financial data using a double entry system; explain the role of the General Journal, General Ledger and inventory cards in the recording process; and describe, discuss and analyse various aspects of the accounting system, including ethical considerations.

• Record transactions and prepare, interpret and analyse accounting reports for a trading business.

Unit 4 – Recording, Reporting, Budgeting and Decision-Making (Code: ACCT44)

Description

This unit provides an opportunity for students to extend their understanding of the recording and reporting process with the inclusion of balance day adjustments and alternative depreciation methods. Students investigate both the role and importance of budgeting in decision-making for a business. Students analyse and interpret accounting reports and graphical representations to evaluate the performance of a business and suggest strategies to improve business performance.

Outcomes

• Record financial data and balance day adjustments using a double entry system, report accounting information using an accrual-based system and evaluate the effect of balance day adjustments and alternative methods of depreciation on accounting reports.

• Prepare budgeted accounting reports and variance reports for a trading business using financial and other relevant information, and model, analyse and discuss the effect of alternative strategies on the performance of a business.

Assessment

• Case studies (Manual and/or ICT-based)

• Tests (Manual and/or ICT-based)

• Structured Questions (Manual and/or ICT-based)

• Report (Manual and/or ICT-based)

Written Examination 50%

Units 3&4 Coursework 50%