Accounting Units 3 and 4
Accounting focuses on financial accounting for a trading business owned by a sole proprietor, and highlights the role of accounting as an information system. You will 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. You will analyse and interpret accounting reports and graphical representations to evaluate the performance of a business. From this evaluation, you will suggest strategies to business owners to improve business performance. The accounting procedures developed in each area of study will incorporate financial indicators to measure business performance, as well as the ethical considerations of business owners when making decisions, including financial, social and environmental
What do you do?
Activities you will engage in include:
- practical exercises that will require recording in the general journal and ledgers
- preparation of trial balance and final reports such as income statements, balance sheets and cash flow statements, which may be done manually and using technology
- reading comprehension tasks where students need to discuss how, why, what, when transactions are recorded and reported in the manner that they are
- preparing budgets and analysing prepared reports to determine strategies of improving performance of the business.
What skills do you need?
To be successful in this subject you need:
Numerical competence: there’s no need to be a maths genius but you must be comfortable with numbers
Communication skills: you need to be able to confidently communicate technical information to others with no accounting knowledge. It is important to be able to communicate clearly at all levels of the business.
Problem solving: in Accounting you will often need to determine the best way to solve a problem. Sometimes Accounting can be like a jigsaw puzzle and you need to be able to put the pieces together. Accounting requires the ability to be able to analyse and interpret information and be able to find solutions to a problem or case study.
Reporting skills: in Accounting you will need to prepare statistical and written reports, providing advice to a business on how it should continue to operate.
Business awareness: when studying any business subject, but particularly in Accounting you need to aware of what is happening in the business environment as this can have a direct impact on the way you answer questions in the area of analysis and interpretation. You need to keep up to date with current economic issues.
What skills do you develop?
Students develop interpersonal, teamwork and problem solving skills. Students learn to analyse facts and figures and be able to interpret data given. They also learn how to apply technology in the accounting field.
You must have access to the internet in order to access this course. All weekly work will be completed and submitted online. You will require a computer with Excel, and a calculator.
The following textbook is required:Macmillan Accounts VCE Units 3 & 4 Value Bundle (Student Book + Digital + Workbook) 6th Edition for the new study design 2019-2023, Neville Box.
Things to think about
You need to have an interest in business and finance.
Having completed either Units 1 or 2 Accounting would be an advantage or recommended, so the student is familiar with some of the Accounting concepts covered in Year 12.
Students will be required to self-assess their understanding of the weekly work and their practice exercises.
Things you can do now
Visit this website which goes through the basics of Accounting. It’s a good introduction for students who have not studied Year 11 accounting before.
Go to the VCAA website for more information about this subject.
Download and print out the Accounting study design for 2019-2023.