QCE AccountingPractice Examination 12

This paper covers

• GST journalising for a GST-registered sole trader: extracting GST from tax-inclusive figures, GST Clearing debits/credits and BAS net position (Unit 4 Topic 2)
• Perpetual FIFO inventory and cost of sales in a computerised trading environment (Unit 3 Topic 2)
• Balance day adjustments: straight-line and reducing-balance depreciation, accrued expenses, prepayments and the allowance for doubtful debts (Unit 4 Topic 1)
• Closing the ledger and preparing reversing entries at 1 July, with the rationale for reversing accruals (Unit 4 Topic 2)
• Fully classified Statement of Profit or Loss (selling, administrative and finance expense classification) for a sole trader (Unit 4 Topic 1)
• Fully classified Statement of Financial Position and the accounting equation / statement of changes in equity (Unit 4 Topic 1)
• Liquidity, profitability and stability ratio analysis with comparison to prior-period results, and evaluative judgement linking ratios to business decisions (Unit 4 Topics 1 and 3)
• Distinguishing accrual profit from cash flow and interpreting non-financial information for decision-making in an Australian/Queensland retail context

Students are permitted to bring into the examination the materials normally allowed for this subject. Answer all questions in the spaces provided.

This is an ATARMAxxing practice paper. It is not an official examination and is not affiliated with, endorsed by, or produced by the VCAA, NESA or the QCAA.