VCE Units 3 & 4 - Accounting

VCE Units 3 & 4 - Accounting

Overview

Units 3 & 4 Accounting students develop their understanding of the accounting processes for a trading business and consider the effect of decisions made on the performance of the business. 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.

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. Students use the double entry system of recording financial data and preparing reports to develop their understanding of the accounting processes and consider the effect of decisions made on the performance of the business.

Areas of Study

1. Recording and analysing financial data – Use double entry accounting to record data and generate accounting information in the form of accounting reports and graphical representations to assist the owner in making decisions about the operation of the business.
2. Preparing and interpreting accounting reports – The preparation of financial reports at the end of the reporting period that provides information to be used as a basis for planning and decision-making by the business owner.

Unit 4 – Recording, reporting, budgeting and decision-making

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.

Areas of Study

1. Extension of recording and reporting – Recording and reporting of financial data in the General Journal and General Ledger by focusing on balance day adjustments and the alternative methods of depreciating for non-current depreciable assets.
2. Budgeting and decision making – Prepare and analyse budgeted accounting reports, both manually and using ICT, and suggest strategies to improve the performance of the business.

Forms of Assessment

• Exercises
• Tests
• End of Year Exam

Prerequisites and Corequisites

It is an advantage to have completed Units 1 & 2 Accounting.