VCE Accounting Units 1 & 2
Accounting is the process of recording, reporting, analysing and interpreting financial data and information which is then communicated to internal and external users of the information. It plays an integral role in the successful operation and management of a small business.
Many students will go on to further studies in business and finance, and other students will go on to become small business owners. The study of Accounting will enable them to develop their financial knowledge and skills.
There are no prerequisites for entry to Units 1, 2 and 3. Students must undertake Unit 3 prior to undertaking Unit 4.
Unit 1: Establishing and operating a service business
This unit focuses on the establishment of a small business and the accounting and financial management of the business. Students are introduced to the processes of gathering, recording, reporting and analysing financial data and information used by internal and external users. Recording and reporting is restricted to the cash basis.
Students examine the role of accounting in the decision-making process using single entry recording of financial data and information for the owner of a service business.
Unit 2: Accounting for a trading business
This unit focuses on accounting for a single activity sole trader. Using the accrual approach, students use a single entry recording system for the recording and reporting of cash and credit transactions stock. They use financial and non-financial information to evaluate the performance of a business. Using these evaluations, students suggest strategies to the owner on how to improve the performance of the business.
Assessment in Unit 2 is through School Assessed Tasks (SAT’s). SAT’s for this unit are:
- Exercises using an accounting computer software package;
- Folio of exercises (manual and ICT-based);
- Case studies;
- Classroom presentation;
- Reports (written, oral and multimedia).