Accounting
Learning Area Leader: Ms Burley
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 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.
Outcomes
· Students should be able to describe the resources required to establish and operate a business and select use accounting reports and other information to discuss the success or otherwise of a business.
· Students should be able to identify and record the financial data, report and explain accounting information for a service business, and suggest and apply appropriate financial and non-financial indicators to measure business performance.
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 and Decision-Making for a Trading Business (Code: ACCT22)
Description
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.
Outcomes
· Students should be able to record and report for inventory and discuss the effects of relevant financial and non-financial factors, and ethical considerations, on the results of business decisions.
· Students should be able to record and report for accounts receivable and accounts payable, and analyse and discuss the effects of relevant decisions, including the influence of ethical considerations, on the performance of the business.
· Students should be able to 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)
· Semester Examination
Unit 3 – Financial Accounting for a Trading Business (Code: ACCT33)
Description
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 preparing 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 effects 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.
Outcomes
· Students should be able to 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.
· Students should be able to record transactions and prepare, interpret and analyse accounting reports for a trading business.
Assessment
The students’ performance in each outcome will be assessed using one or more of the following:
· structured questions (manual and ICT-based)
· a folio of exercises (manual and ICT-based)
· a case study (manual and ICT-based)
Unit 4 – Recording, Reporting, Budgeting and Decision-Making (Code: ACCT44)
Description
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 preparing 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 processes, with the inclusion of balance day adjustments and alternative depreciation methods. They investigate both the role and the 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. Using this evaluation, students suggest strategies to business owners to improve business performance.
Outcomes
· Students should be able to record financial data and balance day adjustments using a double entry system, report accounting information using an accrual- based system, and evaluate the effects of balance day adjustments and alternative methods of depreciation on accounting reports.
· Students should be able to prepare budgeted accounting reports and variance reports for a trading business using financial and other relevant information, and model, analyse and discuss the effects 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)
Unit 3 & 4 Assessment
Units 3 & 4 Coursework = 50%
Written Examination = 50%