VCE AccountingPractice Examination 6

This paper covers

• Unit 3 recording: FIFO perpetual inventory, specialised & general journals, GST Clearing treatment, cost of sales
• Unit 4 balance-day adjustments: prepaid & accrued items, straight-line & reducing-balance depreciation, disposal of non-current assets, bad and doubtful debts
• Reporting: classified Income Statement, classified Balance Sheet satisfying the accounting equation, Cash Flow Statement (direct method)
• Unit 4 budgeting: budgeted Income Statement, three-month Cash Budget, variance analysis (favourable/unfavourable)
• Analysis & interpretation: the eight financial indicators across profitability, efficiency, liquidity and financial stability with two-year trend evaluation
• Qualitative characteristics (relevance, faithful representation, comparability, timeliness), accounting assumptions (entity, going concern, period, accrual) and ethical considerations
• Trading-business scenario: a pet-accessories distributor (sole trader) preparing its first full-year budget after a loss-making prior period and analysing variances

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.