In this unit students develop their knowledge of the accounting process for sole proprietors operating a trading business, with a focus on inventory, accounts receivable, accounts payable and non-current assets. Students use manual processes and ICT, including spreadsheets, to prepare historical and budgeted accounting reports. Students analyse and evaluate the performance of the business relating to inventory, accounts receivable, accounts payable and non-current assets. They use relevant financial and other information to predict, budget and compare the potential effects of alternative strategies on the performance of the business. Using these evaluations, students develop and suggest to the owner strategies to improve business performance.

This unit is delivered in Year 11.

Unit details

Study level:
Vocational and further education (TAFE)
Unit code:


Assessment tasks will be designed to reinforce and extend knowledge in accordance with each unit's learning outcomes, including the setting of practical application tasks designed to provide evidence of competence outcomes, within periodic and scheduled timelines. Students will be expected to demonstrate the following knowledge: Outcome 1 On completion of this unit the student should be able to record and report for inventory and discuss the effect of relevant financial and non-financial factors, and ethical considerations, on the outcome of business decisions. Outcome 2 On completion of this unit the student should be able to record and report for accounts receivable and accounts payable, and analyse and discuss the effect of relevant decisions on the performance of the business including the influence of ethical considerations. Outcome 3 On completion of this unit the student should be able to record and report for non-current assets and depreciation.Assessment will follow the requirements set out in the VCE Accounting Study Guide: The award of satisfactory completion for a unit is based on whether the student has demonstrated the set of outcomes specified for the unit. A variety of learning activities and assessment tasks will provide a range of opportunities for students to demonstrate the key knowledge and key skills in the outcomes. Assessment will be a part of the regular teaching and learning program and will be completed mainly in class and within a limited time-frame. All assessments at Units 1 and 2 are school-based. For this unit students are required to demonstrate achievement of three outcomes. As a set these outcomes encompass all areas of study in the unit.

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