QCE AccountingPractice Examination 2

This paper covers

• Accrual vs cash accounting: why a business can report a profit yet suffer declining operating cash flows
• Direct-method Statement of Cash Flows (operating, investing, financing) and cash flow ratio analysis
• Balance day adjustments: depreciation, prepayments, accrued expenses and doubtful debts
• Fully classified Income Statement preparation for a GST-registered sole-trader wholesaler
• GST/BAS treatment and reversing-entry / bank-reconciliation concepts
• Ratio analysis of an ASX-listed public company: profitability, liquidity, stability and cash-flow ratios
• Evaluative judgement linking accounting profit, cash flow and financial position to business decision-making in the Queensland/Australian 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.