Accounting Unit 1: Establishing and Operating a Service Business
There are no prerequisites for this unit.
This unit focusses on the establishment of a small business, and the accounting and financial management of the business. Students are introduced to the processes of gathering and recording financial data, and reporting and analysing accounting information by internal and external users. The cash basis of recording and reporting is used throughout this unit. Using single entry recording of financial data and analysis of accounting information, students examine the role of accounting in the decision making process for a sole proprietor of a service business.
Areas of Study
Going into Business
A potential small business owner needs to make many decisions before commencing the operations of the business. The decisions made at this early stage will often influence the success or failure of the business. Students investigate the reasons for establishing a small business, factors that lead to success or failure, sources of finance and how pre-operational decisions are made.
Recording Financial Data and Reporting Accounting Information
In this area of study, students investigate the role of accounting in the generation of financial data and accounting information for the owner of a service business. This information is used by the owner to assist in the decision making processes of the business. The focus is on the recording of financial data and the reporting of accounting information using a single entry recording system. Students are required to use both manual and ICT methods in the recording and reporting process.
|Describe the resources required, and explain and discuss the knowledge and skills necessary to set up a small business.
||Selected from tests, exercises and case studies (manual and/or ICT based).
|Identify and record the financial data and
report and explain accounting information for a sole proprietor of a service business.
|Selected from tests, exercises and case studies (manual and/or ICT based).
Overall Final Assessment
End of Semester Examination – 1.5 hours.
Information can be obtained from the Victorian Curriculum and Assessment Authority, Victoria, Australia: www.vcaa.vic.edu.au