Accounting Unit 4: Control and Analysis of Business Performance
Students contemplating a tertiary course in Commerce or Business should note that many courses require students to complete at least one Accounting subject as part of their degree. Students with experience in Accounting at a secondary school level typically find this subject much easier. In a general sense, students should also note the importance of gaining some understanding of the financial context within which businesses and organisations operate.
Accounting Unit 3.
This unit provides an extension of the recording and reporting processes from Unit 3 and the use of financial and non-financial information in assisting management in the decision making process. The unit is based on the double entry accounting system and the accrual method of reporting for a single activity trading business using the perpetual inventory recording system.
Students investigate the role and importance of budgeting for the business and undertake the practical completion of budgets for cash, profit and financial position. Students interpret accounting information from accounting reports and graphical representations, and analyse the results to suggest strategies to the owner on how to improve the performance of the business.
Areas of Study
Extension of Recording and Reporting
Students to build on their knowledge of the accounting system developed in Unit 3. The collecting, measuring, processing and communication of financial data and accounting information is an important process for a sole trader. Students undertake this process using double entry accounting and an accrual based reporting system. Students explore alternative depreciation methods in the recording and reporting process.
Financial Planning and Decision-Making
The owner of a small business must be able to plan and control the activities of the business. The preparation of budgeted accounting reports provides information for the owner in this decision making process. Students focus on preparing budgeted accounting reports and analysing financial and non-financial information for a single activity sole trader. Students evaluate this information and suggest strategies to the owner on how to improve the performance of the business.
Record financial data using double entry accounting and report accounting information using an accrual-based system for a single activity sole trader and discuss the function of various aspects of this accounting system.
Structured questions or test (manual and/or ICT).
|Prepare budgets and variance reports, evaluate the performance of a business using financial and non-financial
information and discuss strategies to improve the profitability and liquidity of the business.
|Task A: Prepare budgets and variance reports for a business using spreadsheets. Evaluate the budgets and variance reports and discuss strategies for improvement.
|Task B: Evaluate the performance of a business using financial and non-financial information and discuss strategies to improve the profitability and liquidity of the business. Performance is assessed via a test.
Overall Final Assessment
||Contribution to Study Score (%)
||Unit 3 Coursework
||Unit 4 Coursework
Information can be obtained from the Victorian Curriculum and Assessment Authority, Victoria, Australia: www.vcaa.vic.edu.au