VCE AccountingPractice Examination 8

This paper covers

• Unit 3 recording: source documents, double-entry general/specialised journals, GST Clearing, and a perpetual FIFO inventory card
• Unit 3 reporting: classified Income Statement (trading format), classified Balance Sheet satisfying Assets = Liabilities + Owner's Equity, and Cash Flow Statement (direct method)
• Unit 4 balance-day adjustments: prepaid and accrued expenses/revenues, straight-line and reducing-balance depreciation, disposal of a non-current asset by trade-in, and bad and doubtful debts
• Unit 4 budgeting: three-month Cash Budget, Budgeted Income Statement, and reconciliation of budgeted cash movement to budgeted net profit
• Unit 4 analysis and interpretation: liquidity, profitability, efficiency and financial-stability indicators computed over two years with trend synthesis
• Ethical considerations and non-financial information integrated with the qualitative characteristics (relevance, faithful representation, comparability) and accounting assumptions (entity, accrual, going concern, period)
• Scenario thread: a second-hand furniture retailer disposing of delivery vehicles and acquiring new assets mid-year within the same reporting period

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.