QCE AccountingPractice Examination 3

This paper covers

• Balance day adjustments — doubtful debts (ageing-of-receivables), bad-debt write-off with GST decreasing adjustment, depreciation (straight-line and reducing-balance), accruals and prepayments
• Accounts receivable management, credit-policy evaluation and net realisable value of debtors
• Direct-method Statement of Cash Flows for a GST-registered sole trader (receipts from customers, payments to suppliers and employees, operating/investing/financing classification)
• Cash-flow ratio analysis and the reconciliation of accounting profit to operating cash flow
• GST/BAS mechanics on credit sales, purchases and bad-debt adjustments (÷11 rule)
• Bank reconciliation and adjusted cash-at-bank
• Fully classified financial statement presentation and net-realisable-value reporting
• Public-company performance analysis — profitability, liquidity, efficiency and stability ratios with justified comparative judgements against prior period and industry benchmarks
• QCAA cognitive verbs across Recall, Understand, Apply, Analyse and Evaluate in the Queensland/Australian agribusiness 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.