Year 12
Year 12
Classroom with Whiteboard

VCE Accounting Units 3 & 4

Entry

There are no prerequisites for entry to Units 1, 2 and 3. Students must undertake Unit 3 prior to undertaking Unit 4.

Unit 3: Recording and reporting for a trading business

This unit focuses on financial accounting for a single activity trading business as operated by a sole trader and emphasises the role of accounting as an information system. Students are introduced to the double entry system of recording using the accrual basis of accounting. The perpetual method of stock recording with the First In, First Out (FIFO) method is used.

Area of Study 1

This area of study focuses on the identification and recording of accounting data for a single activity sole trader. Students learn the techniques and undertake the recording of data in a format that will enhance the decision-making process of the business. They also investigate the impact of the recording process on the business.

Area of Study 2

The preparation of financial reports at the end of the reporting period provides information for future planning and decision-making by the owner of a small business. Students are introduced to the accounting processes required at balance day and the techniques of preparing final reports for a single activity sole trader. An investigation of various aspects of the accounting system is also undertaken by students.

Outcome 1

On completion of this unit the student should be able to record financial data into appropriate accounting records using a double entry accrual-based system for a single activity sole trader, and explain related aspects of this accounting system.

Outcome 2

On completion of this unit the student should be able to record balance day adjustments, prepare financial reports and explain related aspects of the accounting system.

Assessment

Outcome 1

Record financial data into appropriate accounting records using a double entry accrual-based system for a single activity sole trader, and explain related aspects of this accounting system.

Marks allocated: 50

Outcome 2

Record balance day adjustments, prepare financial reports and explain related aspects of the accounting system.

Marks allocated: 50

Total marks 100

*School-assessed coursework for Unit 3 contributes 17 per cent to the study score.

Assessment tasks

The student’s performance on each outcome should be assessed using one or more of the following tasks:

Structured questions

  • A folio of exercises (manual and ICT)
  • A case study (manual and/or ICT)
  • A test (manual and/or ICT)
  • A report (written, oral or multimedia).
  • At least 30 marks must be allocated to ICT-based assessment.

Unit 4: Control and analysis of business performance

This unit provides an extension of the recording and reporting processes from Unit 3 and the use of financial and non-financial information in assisting management in the decision-making process. The unit covers the accrual recording and reporting system for a single activity trading business using the perpetual inventory recording system. Students learn about the role and importance of budgeting for the business and undertake the practical completion of budgets for cash, financial performance and financial position. In this unit students evaluate the information prepared and analyse the results in order to suggest strategies to the owner.

Area of Study 1

The collecting, measuring, processing and communication of accounting data and information is an important process for a sole trader. Students undertake this process using a double entry accrual-based recording and reporting system. The perpetual inventory method with First In, First Out (FIFO) will be used. This area of study allows students to build on the knowledge developed in Unit 3 of the accounting system.

Area of Study 2

The owner of a small business must be able to plan and control the future activities of the business. The preparation of budgeted accounting reports provides information for the owner in this decision-making process. This area of study focuses on the preparation of budgeted accounting reports by students, and the analysis of financial and non-financial information for a single activity sole trader. Students evaluate this information and suggest strategies to the owner on how to improve the performance of the business.

Outcome 1

On completion of this unit the student should be able to record and report financial data and information using a double entry accrual-based system for a single activity sole trader, and explain related aspects of this accounting system.

Outcome 2

On completion of this unit the student should be able to prepare and analyse budgets, evaluate a business using financial and non-financial information and suggest strategies to improve the profitability and liquidity of the business.

Assessment

Outcome 1

Record and report financial data and information using a double entry accrual-based system for a single activity sole trader, and explain related aspects of this accounting system.

Marks allocated 60

Outcome 2

Prepare and analyse budgets, evaluate a business using financial and non-financial information and suggest strategies to improve the profitability and liquidity of the business.

Marks allocated 40

Total marks 100

*School-assessed coursework for Unit 4 contributes 17 per cent to the study score.

Assessment tasks

The student’s performance on each outcome should be assessed using one or more of the following tasks:

  • Structured questions
  • A folio of exercises (manual and ICT)
  • A case study (manual and/or ICT)
  • A test (manual and/or ICT)
  • A written report.

At least 30 marks must be allocated to ICT-based assessment.

Units 3 and 4

Assessment

The student’s performance on each outcome should be assessed using one or more of the following tasks:

  • Structured questions
  • A folio of exercises (manual and ICT)
  • A case study (manual and/or ICT)
  • A test (manual and/or ICT)
  • A written report.

The Victorian Curriculum and Assessment Authority will supervise the assessment of all students undertaking Units 3 and 4. In Accounting the student’s level of achievement will be determined by school-assessed coursework, a mid-year and an end-of-year examination. Percentage contributions to the study score in Accounting are as follows:

  • Unit 3 school-assessed coursework: 17 per cent
  • Mid-year examination: 33 per cent
  • Unit 4 school-assessed coursework: 17 per cent
  • End-of-year examination: 33 per cent

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