Let’s be clear: VCE Accounting is not just about balancing ledgers or memorising definitions. It’s about analysing business performance, solving complex problems, and giving financial advice that holds up under scrutiny. This is a subject that rewards clarity of thinking, attention to detail, and a rock-solid understanding of how businesses operate – not just in theory, but in practice.
And here’s what most students underestimate: Accounting is a language. To succeed, you need to speak it fluently. You need to interpret documents, justify financial decisions, and communicate recommendations that reflect both the numbers and the ethics behind them.
In this post, we’ll show you what top-performing students do differently – and how you can adopt those habits to push your study score into the 40s.
What Top VCE Accounting Students Actually Do
They Treat Accounting Like a Problem-Solving Subject, Not Just a Rules Game
Sure, the rules matter – but the VCAA exam rewards reasoning. Top scorers don’t just remember what to do; they understand why each accounting entry is made and what its implications are.
For example:
- When asked about the impact of a delivery expense, they don’t just say “period cost” – they explain why it can’t be logically allocated to specific inventory items.
- If a question asks about Net Profit versus Net Cash Flow, they know which items affect profit, which affect cash, and how to explain the difference in performance using real-world logic.
These students are always thinking one step ahead – from transaction to report to business decision.
They Know Their Way Around Source Documents and General Journals
The past four years of Assessor Reports make one thing painfully clear: weak students lose easy marks on source document identification, journal entries, and ledger reconstructions.
High performers can:
- Correctly post to, balance and close ledger accounts using the right cross-references
- Record entries straight from inventory cards, invoices or credit notes
- Explain the significance of transactions on the Income Statement, Balance Sheet and Cash Flow Statement
They practise this weekly – because this is where SACs and exam questions love to hide markable detail.
They Write Like Accountants – Not Like Guessers
Discussion questions (financial and ethical) are where students either shine or flounder. The reports from 2021 through to 2024 all say the same thing: students who use vague, emotive, or repetitive language score poorly. Students who use accounting terminology precisely and structure their reasoning clearly, score top marks.
A weak answer: “Changing suppliers was bad because it made profit go down and the customers weren’t happy.”
A strong answer: “Although the Gross Profit Margin initially increased due to lower supplier costs, the decline in product quality led to a slower inventory turnover and a decrease in Net Profit Margin. Additionally, retaining the original branding on lower-quality products raises ethical concerns regarding transparency and customer trust.”
They Understand the ‘Why’ Behind Every Cost Classification
Product vs period cost. Cash vs credit. Identified Cost vs FIFO. Every year, the exam tests these distinctions – and rewards students who understand the business logic.
Top students can explain:
- Why FIFO is used for low-cost items and Identified Cost for high-cost goods
- When delivery becomes a period cost (multiple inventory lines, no logical allocation)
- How a change in cost assignment method affects Net Profit and Inventory Valuation
This is where rote-learning fails – and real thinking wins.
They Know That Ethics Is a Core Part of the Exam
Ethical implications aren’t side notes – they’re part of the curriculum and worth real marks.
Since 2021, every exam has included at least one ethics question, and the top responses:
- Go beyond “it’s not fair” or “they shouldn’t do that”
- Use accounting language and business reasoning
- Explain consequences – to customers, reputation, future profitability, and legal compliance
For example, in 2023, students were asked whether a business should keep extra inventory that was delivered by mistake. Top responses linked the decision to supplier trust, brand image, financial gain, and long-term relationships – not just to the free chairs.
They Master Cash vs Profit Like It’s Taking a Walk to the Park
Every year, a Net Profit vs Net Cash Flow question appears – and every year, students get it wrong.
Top students can:
- Reconcile Net Profit and Cash from Operating Activities
- Identify non-cash items (depreciation, inventory write-downs) and non-operating activities (loan repayments, capital contributions)
- Justify how one can increase while the other decreases – with precision
They don’t just say “there’s a difference” – they explain it, with examples, and tie it back to business performance.
What Quietly Sabotages Otherwise Strong Accounting Students
Forgetting to Read the Question Properly
The number one reason marks are lost? Misreading. Whether it’s a command term (“justify” vs “explain”) or missing the instruction to use a source document, careless reading = easy marks lost.
Incorrect Terminology
Using “stock” instead of “inventory”, or saying “money” instead of “cash inflow from financing activities”, is enough to cost marks. VCAA expects precision.
Repetitive, Undeveloped Reasoning
In discussion questions, simply listing pros and cons isn’t enough. You need a developed argument – showing how the decision affects performance over time.
Poor Time Management in the Exam
Many students don’t finish the paper – not because of content, but because of poor timing. Top students practise entire papers regularly to build exam stamina.
Neglecting Practice with Reports and Models
Reconstructing capital accounts. Preparing a Cash Flow Statement. Recording compound journal entries. These aren’t optional – they’re essential. And they take time to master.
Bottom Line: Accounting is a Skillset, Not Just a Subject
VCE Accounting rewards consistency, precision, and strategic thinking. It’s not about getting lucky with numbers – it’s about learning to think like an accountant, solve problems like a business adviser, and write like someone whose work affects real financial decisions.
To succeed:
- Master the language and logic of accounting – not just the steps
- Regularly practise reports, ledgers, and reconstructions
- Use command terms and ethical frameworks in written responses
- Treat Cash vs Profit, product vs period costs, and financial indicators as your home base
- Do whole exams, with feedback – not just isolated questions
Want to learn how to do all this properly?
Book a one-on-one session with an ATAR STAR Accounting specialist who can sharpen your technical skills, build your problem-solving toolkit, and show you exactly how to write responses that get rewarded.
Because in VCE Accounting, numbers matter – but thinking matters more.