Accounting
Unit 3 & 4
Course Description
VCE Accounting Unit 3 and 4 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.
Unit 3:
In this unit students focus 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.
Where appropriate, the accounting procedures developed in each area of study incorporates the application of the Conceptual Framework, financial indicators to measure business performance, as well as the ethical considerations of business owners when making decisions, including financial, social and environmental.
Outcomes - On completion of this unit students will 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.
record transactions and prepare, interpret and analyse accounting reports for a trading business.
Assessment Tasks
Case Study Analysis/Structured questions & a folio of exercises (utilising manual methods and ICT) (AOS 1 )
Case Study Analysis/Structured questions & folio of exercises (utilising manual methods and ICT) (AOS 2)
Unit 4:
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.
Where appropriate, the accounting procedures developed in each area of study incorporates application of the Conceptual Framework and financial indicators to measure business performance, as well as the ethical considerations of business owners when making decisions, including financial, social and environmental.
Outcomes - On completion of this unit students will 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 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 Tasks
Case Study Analysis/Structured questions & a folio of exercises (utilising manual methods and ICT) (AOS 1 )
Case Study Analysis/Structured questions & folio of exercises (utilising manual methods and ICT) (AOS 2)
Textbook requirements:
Cambridge VCE Accounting Units 3&4 Fourth Edition (print and digital + print workbook) - Not included in School Bundle
Resources/Requirements:
School laptop provided in School Bundle
A4 Exercise Book & pens
Calculator
Additional Costs: None
Career Pathways
What Courses/Careers this could lead to:
VCE Accounting prepares students for a university or TAFE vocational study pathway to commerce, management and accounting, leading to careers in areas such as financial accounting, management accounting, forensic/investigative accounting, taxation, environmental accounting, management and corporate or personal financial planning.