VCE Units 1 & 2 - Accounting
VCE Units 1 & 2 - Accounting
Overview
Units 1 & 2 Accounting establishes the process for sole proprietors operating a service and trading business, with a focus on the establishment of a business and the role of accounting in the determination of business success or failure. Extending to recording and reporting on inventory, accounts receivable, accounts payable and non-current assets.
Unit 1 – The role of accounting in business
In this area of study students analyse, interpret, and evaluate the performance of the business using financial and non-financial information. Students record financial data and prepare reports for service businesses owned by sole proprietors.
Areas of Study
- The role of accounting – Students investigate the reasons for establishing a business. They explore types of business ownership, factors that lead to the success or failure of a business, sources of business finance and ethical considerations.
- Recording financial data and reporting accounting information for a service business – Students investigate the role of accounting in generating financial data and accounting information. They use the accrual method for determining profit for a service business operating as a sole proprietor with cash and credit transactions.
Unit 2 – Accounting and decision-making for a trading business
Students prepare accounting reports for sole proprietors operating a trading business, with a focus on inventory, accounts receivable, accounts payable and non-current assets. Using manual processes and ICT, including spreadsheets, to prepare historical and budgeted accounting reports.
Areas of Study
- Accounting for inventory – Record and report the movements of inventory through a business.
- Accounting for and managing accounts receivable and accounts payable – Record and report for accounts receivable and accounts payable and analyse and discuss the effect of relevant decisions on the performance of the business.
- Accounting for and managing non-current assets – Accounting processes for non-current assets. Calculating and applying depreciation using the straight-line method and recording and reporting of depreciation.
Forms of Assessment
- Exercises
- Tests
- End of Year Exam
Prerequisites and Corequisites
It is an advantage to have completed Business and Economics at Year 10.