In this unit students further develop their understanding of accounting for a trading business owned by a sole proprietor and the role of accounting as an information system. 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.

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. From this evaluation, students suggest strategies to business owners to improve business performance.

This unit is delivered in Year 12.

Unit details

Study level:
Vocational and further education (TAFE)
Unit code:
AC034

Prerequisites

AC033 - Accounting 3

Assessment

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 financial data and balance day adjustments using a double entry system, report accounting information using an accrual-based system and evaluate the effect of balance day adjustments and alternative methods of depreciation on accounting reports. Outcome 2 On completion of this unit the student should be able to prepare budgeted accounting reports and variance reports for a trading business using financial and other relevant information, and model, analyse and discuss the effect of alternative strategies on the performance of a business.Assessment will follow the requirements set out in the VCE Accounting Study Guide: SCHOOL-BASED ASSESSMENT 1. Satisfactory completion 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 assessment tasks will provide a range of opportunities for students to demonstrate the key knowledge and key skills in the outcomes. 2. Assessment of levels of achievement The student's level of achievement in Unit 4 will be determined by School-assessed Coursework (SAC). SAC will be completed mainly in class and within a limited time-frame. SAC for Unit 3 will contribute 25 per cent to the study score (AC033 Accounting 3). SAC for Unit 4 will contribute 25 per cent to the study score. EXTERNAL ASSESSMENT The level of achievement for Units 3 and 4 is also assessed by an end-of-year examination, which will contribute 50 per cent to the study score.

Where to next?

VU takes care to ensure the accuracy of this unit information, but reserves the right to change or withdraw courses offered at any time. Please check that unit information is current with the Student Contact Centre.