VCE AccountingPractice Examination 13

This paper covers

• Recording: general-journal entries from source documents with correct GST Clearing treatment (credit purchase, cash sale under perpetual inventory, capital contribution, creditor payment with discount received)
• Perpetual inventory using FIFO cost assignment — inventory card, cost of sales and closing balance
• Balance-day adjustments: prepaid expense, accrued wages, increase in Allowance for Doubtful Debts, accrued interest, and their effect on the accounting equation
• Disposal of a non-current asset using reducing-balance depreciation, with general-journal entries and calculation of profit/loss on disposal
• Analysis and interpretation of profitability and efficiency indicators after a price-discounting strategy (Gross Profit Margin, Net Profit Margin, Return on Owner's Investment, Inventory Turnover) with non-financial evaluation
• Cash budgeting — a three-month cash budget with debtor-collection patterns, and interpretation for planning and control
• Budgeted reporting — a budgeted classified Income Statement and a budgeted Cash Flow Statement (direct method) with reconciliation to closing cash
• Ethical considerations and the accounting assumptions and qualitative characteristics (entity, going concern, period, accrual; relevance, faithful representation, comparability, timeliness) applied to recording, reporting and decision-making

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.