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), including spreadsheets.

In unit 1 students explore the different types of business ownership structures. They will identify, classify and record financial data and use both manual methods and technology to record and report financial information. Students apply their understanding to measure the success of a business. In unit 2, students develop their understanding and knowledge of the accounting process for trading firms, with a focus on inventory, accounts receivable, accounts payable and non-current assets.

In units 3 and 4, students look at the difference between cash and profit. They use the double entry system to record transactions. Then prepare, interpret and analyse accounting reports for a trading business. This includes an understanding of balance day adjustments and depreciation methods. They prepare budgets and interpret financial reports to identify ways an owner could improve the operation of their business. This includes both the financial and ethical factors (social and environmental) faced by business owners when making decisions.

Units 

• Unit 1: Role of accounting in business

• Unit 2: Accounting and decision-making for a trading business 

• Unit 3: Financial accounting for a trading business

• Unit 4: Recording, reporting, budgeting and decision- making