Accounting Unit 1: Role of Accounting in Business
There are no prerequisites for this unit.
This unit explores the establishment of a business and the role of accounting in the determination of business success or failure. In this, it considers the importance of accounting information to stakeholders. Students analyse, interpret and evaluate the performance of the business using financial and non-financial information. They use these evaluations to make recommendations regarding the suitability of a business as an investment. Students record financial data and prepare reports for service businesses owned by sole proprietors.
Areas of Study
The role of accounting
Individuals should consider a range of factors before committing to or continuing in a business venture. Students investigate the reasons for establishing a business and possible alternatives to operating a business. They explore types of business ownership, factors that lead to the success or failure of a business, sources of business finance and ethical considerations. They develop an understanding of the role and importance of accounting in operating a business and consider how accounting is used to provide information for making operational and investment decisions.
Recording financial data and reporting accounting information for a service business
In this area of study, students investigate the role of accounting in generating financial data and accounting information. They use the accrual method for determining profit for a service business operating as a sole proprietor with cash and credit transactions. Students use both manual methods and ICT to record financial data and report accounting information. They apply accounting assumptions and qualitative characteristics and use business documents and indicators to measure business performance in order to consider the success or failure of the business.
|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