VCE AccountingPractice Examination 2

This paper covers

• Recording: double-entry journals, perpetual FIFO inventory, GST Clearing, source documents (tax invoices)
• Reporting: classified Income Statement, classified Balance Sheet, Cash Flow / cash budget, accounting equation
• Balance-day adjustments: prepaid & accrued items, straight-line & reducing-balance depreciation, disposal of non-current assets, bad & doubtful debts
• Budgeting: cash budget construction and budgeted analysis for a trading business
• Analysis & interpretation: liquidity, efficiency, profitability and financial-stability indicators (WCR, QAR, ITO, ARTO, APTO, GPM, NPM, ROA, ROE, ATO, Debt Ratio)
• Ethical considerations plus the four qualitative characteristics (relevance, faithful representation, comparability, timeliness) and four accounting assumptions (entity, going concern, period, accrual)
• Trading-business scenario: a regional hardware & building-supplies store with significant GST obligations and long-term mortgage financing

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.