QCE AccountingPractice Examination 4

This paper covers

• Statement of Cash Flows (direct method) classification and preparation for non-current asset transactions
• Acquisition cost capitalisation of non-current assets (list price, installation, delivery) with GST
• Depreciation: straight-line and reducing-balance methods, part-year calculations
• Disposal of non-current assets: carrying amount, proceeds, gain/loss on disposal
• Balance day adjustments: prepayments, accrued wages, doubtful debts (Allowance method)
• GST/BAS: net GST payable/refundable on sales, purchases and capital acquisitions
• General journal entries and ledger posting for asset purchase, depreciation and disposal
• Fully classified financial statements and the impact of NCA purchases on financial position
• Cash flow and financial ratio analysis (cash flow ratio, current ratio, debt ratio, cash flow to sales)
• Analyse and evaluate: why cash flow differs from profit; justified decision-making using QCAA cognitive verbs (assess, justify, recommend)

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.