QCE AccountingPractice Examination 9

This paper covers

• Balance day adjustments for a sole trader GST-registered trading business: straight-line depreciation of delivery vehicles and leasehold improvements, prepayments, accrued wages and doubtful debts (QCAA Units 3 & 4)
• Depreciation theory and application: straight-line vs reducing-balance, part-year depreciation, accumulated depreciation as a contra-asset, and carrying amount
• Disposal of a non-current asset by trade-in, including the Disposal of Delivery Vehicle ledger account, gain/loss on disposal and GST treatment
• Reversing entries and the accrual-vs-cash distinction
• Preparation of fully classified financial statements (Income Statement and Balance Sheet) with correct classification of adjusted figures
• Ratio analysis and evaluation: profitability, liquidity and stability ratios interpreted against prior-period comparatives to support a justified decision (Evaluate cognition)
• GST/BAS reporting and perpetual inventory in a computerised environment
• Queensland/Australian regional small-business (sole trader bookshop) 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.