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 & 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.
It is not recommended that students attempt Accounting Unit 3 without first having completed Units 1 and 2. Unit 4 may not be attempted without first having successfully completed Unit 3.
Small businesses are a major part of the Australian economy. In Victoria, large numbers of sole proprietors (owners) operate their own small trading business, selling items of inventory, such as books, clothing, window glass, floor tiles and cakes to customers. Sole traders need financial data to make effective business decisions. It is this data that an accounting system provides.
In this unit you will learn about:
the purposes of accounting systems
how a sole trader uses the double entry system to record financial data
the perpetual method of recording inventory for a small trading business
the assumptions that apply when creating accounting reports
the qualities required to make accounting information useful.
On completion of this unit the student 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.
On completion of this unit the student should be able to record transactions and prepare, interpret and analyse accounting reports for a trading business.
Accounting systems do more than record numbers - they are information systems that provide decision makers with vital financial data. Accountants work with managers and business owners to create and interpret financial reports, and analyse the results to suggest strategies for improving the performance of a business.
In this unit you will learn about:
the role of accounting as an information system
how to use the accrual basis of accounting to prepare reports
the role and importance of budgeting in decision making in a business
how to interpret accounting information from reports and graphical representations.
On completion of this unit the student 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 effect of balance day adjustments and alternative methods of depreciation on accounting reports.
On completion of this unit the student 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 effect of alternative strategies on the performance of a business.
There are two types of assessment used for Accounting Units 3 and 4:
School-assessed coursework. In total, this contributes 50% of all the year’s final assessment. Here, teachers rate a student’s performance by using a series of internally assessed SACs (e.g. selected from a folio of exercises, a case study, tests) all of which may be conducted manually and/or with the use of ICT.
End-of-year examination. This contributes 50% of the final assessment. The examination will consist of a series of short and extended response questions. These may include a variety of item types including scenarios, questions with multiple parts, short answer questions and extended response questions.
For more detailed information, please click on the link/s below:
Students will need to order the textbook from the booklist.
Cambridge VCE Accounting Units 3 & 4 (5th edition) - Textbook and workbook
Edrolo- VCE Accounting 3-4 Resource- This will be purchased and distributed to students by the school.
Ruler 150mm Plastic Clear
Pencil Mechanical Pacer/Papermate Grip
Scientific calculator