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Accounting

Year 12 - Elective

Length of Course: Full Year
Department: Business Studies
Head of Department: Ms Alison Godbehear
Year Available: 2027

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

Curriculum focus

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.

Unit 3 – Financial Accounting for a Trading Business

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.

In this unit students:

  • Use the double entry system of recording financial data and prepare reports applying the accrual basis of accounting and the perpetual method of inventory recording

  • Consider the effects of decisions made on the performance of the business

  • Interpret reports and information presented in a variety of formats

  • Suggest strategies to improve the performance of the business

  • Apply the Conceptual Framework (Qualitative Characteristics, Accounting Assumptions and Elements) when recording and reporting

  • Use financial indicators to analyse and evaluate business performance

  • Apply ethical and financial considerations to business decision making

Unit 4 – Recording, Reporting Evaluating and Planning Accounting Information

In this unit, students further develop their understanding of accounting for a trading business owned by a sole proprietor.

In this unit students:

  • Extend their understanding of the recording and reporting processes (including preparing Balance Day Adjustments and applying alternative depreciation methods)

  • Investigate both the role and importance of budgeting in decision making for a business

  • Analyse and interpret accounting reports and graphical representations

  • Suggest strategies to business owners to improve business performance

  • Apply the Conceptual Framework (Qualitative Characteristics, Accounting Assumptions and Elements) when recording and reporting

  • Apply ethical and financial considerations to business decision making

Assessment

There are two types of assessment used for Accounting Units 3 and 4:

  1. 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.

  2. 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.

Links

For more detailed information, please click on the link/s below:

Key Resource

Students will need to order the textbook from the booklist.

  • Cambridge VCE Accounting Units 3 & 4 - 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