VCE Accounting Question Thread!

[Damoz.G]

So would you do the same in an Income Statement (wait is it called Profit and Loss Statement now or what?), like report Accrued Wages incurred seperately Wages paid for and incurred?

No, its different for the Income Statement. Add the expense paid plus the expense incurred but not yet paid together which occur in the same Reporting Period as one expense in the Income Statement.

[pumpkinbread]

What are the effects on the financial reports if a business fails to recognise NRV when valuing its stock?
And is it okay to shortcut names in the exam for eg. disc. rev. , accum. depn - vehicle, etc?

Thanks

[abcdqdxD]

And is it okay to shortcut names in the exam for eg. disc. rev. , accum. depn - vehicle, etc?

Thanks

Don't abbreviate in the exam!

[Damoz.G]

What are the effects on the financial reports if a business fails to recognise NRV when valuing its stock?
And is it okay to shortcut names in the exam for eg. disc. rev. , accum. depn - vehicle, etc?

Thanks

If NRV is not recognised:
* Income Statement - Understated Stock Write-Down Expense means Overstated Net Profit.
* Balance Sheet - Assets (Stock Control) are overstated and Owner's Equity is overstated (Understated Stock Write-Down Expense means Overstated Net Profit).
* CFS - No Effect.

No, those abbreviations aren't allowed, you will lose the whole mark if you do. =/

[abcdqdxD]

P.S.: Good luck to y'all, but it looks like a lot of you don't even need it haha

Good luck on Wednesday! H1s for all

Oh and good luck to all accounting students of 2013! Remember to stay calm and write fast

[pumpkinbread]

Thanks guys

What about the dates in the ledger accounts?
For eg. if all the items are related to Dec. 31 do we have to write in each line Dec. 31? Or can we write in the very first line Dec. 31 and then leave the lines underneath it blank?

Hopefully that makes sense LOL

[Damoz.G]

Thanks guys

What about the dates in the ledger accounts?
For eg. if all the items are related to Dec. 31 do we have to write in each line Dec. 31? Or can we write in the very first line Dec. 31 and then leave the lines underneath it blank?

Hopefully that makes sense LOL

Some Examiner's Reports have just the one Dec 31 for the rest of the entries, but you really should mention it for every entry.

Basically, avoid shortcuts and abbreviations at all times. I know your pushing for time, but don't take shortcuts, because it could be wrong or you may get a harsh assessor and you will lose the marks. So just don't use abbreviations or shortcuts - Write the full thing out and then there is no question on whether your assessor gives you marks or not (As long as the rest of the answer is correct as well).

[pumpkinbread]

Some Examiner's Reports have just the one Dec 31 for the rest of the entries, but you really should mention it for every entry.

Basically, avoid shortcuts and abbreviations at all times. I know your pushing for time, but don't take shortcuts, because it could be wrong or you may get a harsh assessor and you will lose the marks. So just don't use abbreviations or shortcuts - Write the full thing out and then there is no question on whether your assessor gives you marks or not (As long as the rest of the answer is correct as well).

Thanks so much

[Damoz.G]

Some of you all asked challenging questions over the last few days that made me think as well, so its actually helped me out a bit as well by answering your questions!

Good Luck everyone!   

[TimmyC]

Good luck guys/girls

(sorry about no question lol)

[mdotwillo]

Is it okay to shortcut names in the exam for eg. disc. rev. , accum. depn - vehicle, etc?

I'd say Acc. Dep'n of [NCA] is the only abbreviation VCAA would accept. They have used it numerous times in their Assessment Reports over the years. However, they write the full 'Accumulated Depreciation - NCA' in the Balance Sheet, this is because there is always enough space to do so.

If you're short on time, the only place I'd write the abbreviation would be in the 'Disposal of NCA' General Ledger account, due to the lack of space. In saying that, if you have the time up your sleeve, take the extra 5 seconds out to try and fit it into the cross reference column, you never know what assessor you'll get (as stated in a previous post).

[Damoz.G]

If your gonna abbreviate, then there's probably no point in even doing the Question or Mark's worth of working out. One abbreviation, and you lose the whole mark.

[Eugenet17]

In a balance sheet, when should i draw a line/double lines? Eg. A double line under total assets. 

Also, are there any other specific formattings such as this in a balance sheet that i should be aware of? Do you need a space before the next heading?

[abcdqdxD]

In a balance sheet, when should i draw a line/double lines? Eg. A double line under total assets. 

Also, are there any other specific formats such as this in a balance sheet that i should be aware of? Do you need a space before the next heading?

It doesn't really matter. Assessors don't allocate marks to lines. As for spacing and stuff, once again it isn't important as you are not marked for formatting. If you use the Cambridge textbook, try to get a hold of the solutions to see how they set it out and use it as a guide. The exam will provide you with the necessary formatting so it isn't something you need to worry about

[Eugenet17]

It doesn't really matter. Assessors don't allocate marks to lines. As for spacing and stuff, once again it isn't important as you are not marked for formatting. If you use the Cambridge textbook, try to get a hold of the solutions to see how they set it out and use it as a guide. The exam will provide you with the necessary formatting so it isn't something you need to worry about

Oh okay then, thanks!