VCE Accounting study plan

Define and distinguish the accounting elements (assets, liabilities, owner's equity, revenues, expenses) using the 2025 study design definitions.

Apply the accounting equation to record at least 15 transactions for a service business, ensuring the equation stays balanced after each entry.

Classify items as current or non-current and justify each classification using the qualitative characteristics from the Conceptual Framework.

Prepare a simple trial balance from a given list of ledger balances and identify any errors that would cause it to be unbalanced.

Record transactions in the general journal and post to the general ledger, including GST-clearing entries for a registered business.

Prepare a classified balance sheet and an income statement from a given adjusted trial balance.

Explain the purpose of the GST clearing account and demonstrate how it is settled with the ATO.

Identify and correct at least three common recording errors (e.g., transposition, omission) and explain their effect on the financial statements.

Describe the accrual and cash bases of accounting and apply each to a small set of transactions.

Prepare a bank reconciliation and the related journal entries, including direct credits, direct debits, and dishonoured cheques.

Maintain a petty cash fund using the imprest system, including the preparation of a petty cash book and reimbursement entry.

Record bad debts, allowance for doubtful debts, and subsequent recovery of bad debts in the general journal.

Calculate and interpret at least two profitability and two liquidity ratios from a set of financial statements.

Prepare adjusting and closing entries for accruals, prepayments, depreciation, and inventory adjustments.

Explain the purpose of the closing process and demonstrate how temporary accounts are closed to the capital account.

Distinguish between the perpetual and periodic inventory systems and record sample transactions under each.

Outline the structure of the Units 3–4 study design (financial accounting, managerial accounting, and the school-assessed coursework) and map its topics to the remaining study weeks.

Record inventory transactions under the perpetual inventory system using FIFO and identify cost-of-goods-sold and ending inventory values.

Prepare a stock card and reconcile the physical stocktake with the inventory ledger, recording any stock loss or gain.

Apply the lower-of-cost-and-net-realizable-value rule to value inventory and record any write-down.

Explain the impact of inventory valuation methods on reported profit and the balance sheet.

Prepare a cash flow statement (or cash budget) for a small business, classifying cash flows into operating, investing, and financing activities.

Calculate and interpret at least four cash-flow ratios and explain what each reveals about liquidity and solvency.

Prepare a budgeted income statement and a cash budget for a three-month period, incorporating given assumptions.

Evaluate a business's cash position using budget versus actual variance analysis and recommend corrective actions.

Apply cost-volume-profit analysis to calculate break-even point, contribution margin, and margin of safety for a given business scenario.

Prepare a manufacturing statement (cost of goods manufactured) for a simple manufacturer, classifying product and period costs.

Evaluate a capital investment proposal using payback period and accounting rate of return, and discuss qualitative factors.

Distinguish between relevant and irrelevant costs in a short-term decision (e.g., special order, make-or-buy).

Complete a full-length practice examination under timed conditions (2 hours) covering both Units 1–2 and Units 3–4 content.

Review every incorrect answer, categorise errors by topic, and re-solve at least five previously missed question types.

Summarise the key formulas, definitions, and qualitative characteristics from both domains into a one-page reference sheet.

Explain how the 2025 study design's key knowledge and key skills are assessed in examination-style questions, using at least three sample questions.