VCE AccountingPractice Examination 3

This paper covers

• Unit 3 recording — source documents, double-entry journals, GST Clearing and FIFO perpetual inventory
• Unit 3 & 4 reporting — classified Income Statement, Balance Sheet and Cash Flow Statement (direct method)
• Unit 4 balance-day adjustments — high prepaid advertising, accrued expenses and accrued revenue under the accrual assumption
• Unit 4 depreciation (straight-line and reducing-balance) and disposal of a non-current asset
• Unit 4 bad debts and the provision for doubtful debts, with Balance Sheet presentation of a contra asset
• Unit 4 budgeting — a seasonal cash budget and budgeted-vs-actual variance analysis
• Unit 4 analysis and interpretation — the eight financial indicators across profitability, liquidity, efficiency and stability, integrated with non-financial information
• Ethical considerations and the qualitative characteristics (relevance, faithful representation, comparability, timeliness) applied to a single online homewares trading business

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.