QCE AccountingPractice Examination 14

This paper covers

• Direct-method Statement of Cash Flows and reconciling cash flow from operations to net profit
• Debtors turnover (times and days) and the link between collection efficiency and operating cash flow
• Balance day adjustments: bad debts, allowance for doubtful debts, depreciation (SL and diminishing balance), prepayments, accrued expenses
• GST treatment on bad debt write-offs and BAS remittance in cash flow
• Journal entries, ledger posting and net realisable value of accounts receivable
• Fully classified financial statements and liquidity ratios (current, quick)
• Bank reconciliation and reversing-entry rationale
• Evaluative analysis: assessing collection practices and recommending improvements using stimulus figures (QLD plumbing SME 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.