QCE AccountingPractice Examination 13

This paper covers

• Analysis and interpretation of a public company's declining profitability (gross profit margin, net profit margin, expense ratio) against prior periods and industry benchmarks
• Stability and liquidity ratio analysis (interest cover, debt ratio, debt-to-equity, current and quick ratios) for an ASX-listed retail chain
• Balance day adjustments for a GST-registered sole trader: diminishing-balance depreciation, allowance for doubtful debts, accrued wages, prepaid insurance and accrued interest revenue
• Perpetual-inventory journal entries with GST: credit sales and COGS, credit purchases, sales returns and settlement discount received
• Direct-method Statement of Cash Flows components and the reconciliation of accounting profit to net cash flow
• GST/BAS net position, reversing entries, internal controls and fully classified financial statement classification
• Evaluative, evidence-based judgements linking calculated ratios to business decision-making using QCAA cognitive verbs (assess, justify, recommend, conclude)

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.