QCE AccountingPractice Examination 16

This paper covers

• Accounts payable control account vs subsidiary ledger reconciliation for a GST-registered sole trader gift shop
• Identifying and correcting control-account errors versus subsidiary-ledger-only errors, with general journal corrections
• Perpetual inventory recording of purchases, purchases returns and discount received with GST
• Balance day adjustments: straight-line and diminishing-balance depreciation, accrued expenses, prepayments, allowance for doubtful debts (negative asset) and accrued revenue
• Reversing entries and their effect on expense accounts
• GST/BAS net position (GST collected less GST paid)
• Direct-method Statement of Cash Flows: cash received from customers and cash paid to suppliers via receivable/payable movements
• Cash flow ratio analysis (operating cash flow to current liabilities; cash flow to sales) with prior-period comparison
• Analysis of why operating cash flow differs from profit and evaluation of financial performance using stimulus figures
• Internal control weaknesses in the accounts payable cycle and recommendations for improvement

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.