QCE AccountingPractice Examination 15

This paper covers

• Financial statement analysis for lending decisions (Unit 4): debt ratio, current ratio, quick asset ratio, times interest earned, profitability and cash-flow ratios
• Comparative and trend analysis against prior-period results and industry benchmarks using QCAA formula-book conventions
• Balance day adjustments: doubtful debts (allowance method), straight-line and reducing-balance depreciation, prepayments and accrued interest
• Preparation of fully classified financial statements for a GST-registered business
• Direct-method Statement of Cash Flows and reconciliation of net profit to net operating cash flow
• GST recording, bad-debt write-offs, reversing entries and the accounting equation (Units 3 & 4 procedural core)
• Evaluative decision-making: assessing solvency, stability and creditworthiness for a prospective lender with quantitative evidence

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.