VCE AccountingPractice Examination 17

This paper covers

• Recording under the double-entry system with GST Clearing and FIFO perpetual inventory (purchases, credit sales, inventory card)
• Reporting: classified Income Statement, classified Balance Sheet (accounting equation) and Cash Flow Statement (direct method) for a sole-trader trading business
• Balance-day adjustments: prepaid and accrued expenses, and the provision for doubtful debts, under the accrual assumption and matching
• Depreciation of non-current assets by the reducing-balance method and the disposal of a non-current asset (loss on disposal)
• Budgeting: constructing a cash budget across a quarter and using variance analysis as a planning and control tool
• Analysis and interpretation: the eight financial indicators (liquidity, gearing, profitability, efficiency) integrated with non-financial information (customer-return rate, staff turnover)
• Ethical considerations and the qualitative characteristics (relevance, faithful representation, comparability, timeliness) and accounting assumptions (entity, going concern, period, accrual)

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.