§-Accounting syllabus
VIC · VCAA← Accounting
Accounting syllabus, dot point by dot point
Every dot point in the VIC Accounting syllabus, with a focused answer for each. Click any dot point for a worked explainer, past exam questions and links to related points.
Unit 3: Financial accounting for a trading business
Module overview →How do the five accounting elements interact through the accounting equation when a business records transactions?
Identifying the accounting elements of assets, liabilities, owner's equity, revenues and expenses, classifying assets and liabilities as current or non-current, and explaining the effect of transactions on the accounting equation
Why are balance day adjustments needed to report profit faithfully under accrual accounting?
Balance day adjustments for prepaid expenses, accrued expenses, prepaid revenue and accrued revenue, and their effect on the calculation of net profit and the reporting of assets and liabilities
Why can a profitable business run short of cash, and how do accrual profit and net cash flow differ?
Explaining the distinction between cash and profit, identifying the items that cause net profit to differ from net cash flow from operations, and reconciling the two figures
How are classified accounting reports prepared and what does each report communicate about a business?
Preparing a classified Income Statement, Balance Sheet and Cash Flow Statement for a trading business, and explaining the relationships between the three general purpose financial reports
How is the cost of a non-current asset allocated across its useful life using depreciation?
Calculating and recording depreciation of non-current assets using the straight-line and reducing balance methods, and explaining the effect of depreciation on the accounting reports
How is financial data recorded in a double entry system using the General Journal and General Ledger?
Recording financial data for a trading business using a double entry system, including the role of source documents, the General Journal, the General Ledger and inventory cards in the recording process
How is the Goods and Services Tax recorded through the GST Clearing account and reported as a current asset or current liability?
Recording the Goods and Services Tax on sales and purchases using the GST Clearing account and reporting the GST balance as a current liability owed to or a current asset receivable from the Australian Taxation Office
How is inventory valued at the lower of cost and net realisable value, and how are inventory write-downs, losses and gains recorded?
Valuing inventory at the lower of cost and net realisable value and recording inventory write-downs, inventory losses and inventory gains, including the effect on the accounting reports
How does a perpetual inventory system track stock using inventory cards under the First In First Out and identified cost methods?
Recording movements of inventory on inventory cards under a perpetual system using the First In First Out and identified cost methods for purchases, sales, returns, drawings and inventory used
What is the difference between product costs and period costs, and how does each affect the cost of inventory and the Income Statement?
Distinguishing product costs from period costs and recording product costs as part of the cost of inventory while recording period costs as expenses in the period they are incurred
How do the qualitative characteristics and accounting assumptions of the Conceptual Framework shape the way financial information is recorded and reported?
Explaining and applying the qualitative characteristics and the accounting assumptions of the Conceptual Framework to justify the recording and reporting of financial information
What source documents does a trading business use to verify transactions, and which document supports each type of transaction?
Identifying the source documents used by a trading business to record financial transactions and explaining the role of source documents in providing verifiable evidence for the accounting process
How does a trial balance check the accuracy of the ledger, and what errors does it fail to detect?
Preparing a trial balance from the General Ledger to check that total debits equal total credits and explaining the errors that a trial balance does and does not reveal
Unit 4: Recording, reporting, budgeting and decision-making
Module overview →How are bad debts written off and how does an allowance for doubtful debts apply the accrual basis to expected future losses?
Recording bad debts written off and establishing an allowance for doubtful debts as a balance day adjustment, and reporting the net realisable value of accounts receivable
How are budgeted accounting reports prepared and how do they support planning and control?
Preparing a Budgeted Income Statement, Budgeted Cash Flow Statement and Budgeted Balance Sheet for a trading business and explaining the role of budgeting in planning and decision-making
How is the sale or trade-in of a non-current asset recorded and why does a profit or loss on disposal arise?
Recording the disposal of non-current assets, including by sale and trade-in, calculating the profit or loss on disposal and explaining its cause
How do ethical considerations affect accounting decisions, and what are the consequences of manipulating reports by shifting revenues and expenses between periods?
Discussing and evaluating the ethical considerations in business decision-making, including the manipulation of profit by shifting revenues and expenses between reporting periods and the wider social and environmental responsibilities of a business
How are financial indicators used to analyse profitability, liquidity and efficiency for decision-making?
Calculating and interpreting financial indicators of profitability, liquidity and efficiency, and using them with non-financial information to evaluate business performance
How is non-financial information used alongside financial indicators, and what strategies can a business use to improve performance?
Identifying non-financial information relevant to evaluating business performance and recommending strategies to improve profitability, liquidity and efficiency in light of both financial indicators and non-financial information
How do variance reports compare budgeted and actual results to control business performance?
Preparing variance reports comparing budgeted and actual figures, classifying variances as favourable or unfavourable, and explaining their use in evaluating and controlling business performance