QCE AccountingPractice Examination 5

This paper covers

• Perpetual and periodic inventory valuation: FIFO vs weighted average during rising supplier costs (Unit 3, computerised trading)
• Effect of inventory method choice on cost of goods sold, closing inventory, gross profit and gross-profit margin
• Balance day adjustments: straight-line and diminishing-balance depreciation, doubtful debts and the allowance method, accruals, prepayments and unearned revenue (Unit 4)
• GST/BAS reporting for a GST-registered sole trader (GST on sales, GST on purchases, net GST payable)
• Fully classified financial statements and correct financial-statement classification
• Reversing entries and the accrual-versus-cash distinction
• Statement of Cash Flows classification and why operating cash flow diverges from net profit
• Public-company performance analysis: profitability, liquidity, stability, efficiency and cash-flow ratios with comparative (prior-period) judgement
• Evaluative decision-making using QCAA cognitive verbs (assess, justify, recommend, conclude) supported by quantitative evidence
• Australian accounting conventions and the Queensland retail business 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.