VCE AccountingPractice Examination 4

This paper covers

• Recording: double-entry general/specialised journals, GST Clearing, perpetual inventory (FIFO), ledger posting and balancing
• Balance-day adjustments: prepaid and accrued expenses, straight-line and reducing-balance depreciation, disposal of non-current assets
• Accounting for bad debts and the provision for doubtful debts (net realisable value of Accounts Receivable)
• Reporting: classified Income Statement, classified Balance Sheet (accounting equation), Cash Flow Statement (direct method)
• Budgeting: Budgeted Income Statement, Cash Budget construction and variance (budget vs actual) analysis
• Analysis and interpretation: liquidity, efficiency, profitability and stability indicators with trend-based evaluation
• Ethical considerations and the qualitative characteristics (relevance, faithful representation, comparability, timeliness) and assumptions (entity, going concern, period, accrual)
• Trading-business scenario: a suburban cafe-supplies wholesaler selling on credit, managing bad debts and variable raw-material (coffee-bean) costs

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.