ATAR Notes: Forum
Archived Discussion => 2011 => Mid-year exams => Exam Discussion => Victoria => Accounting => Topic started by: Furbob on June 14, 2011, 08:35:03 pm
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before my brain explodes - was the QC for the PURPOSE of preparing a Debtors Schedule Relevance or Reliability?
I've seen majority post that it is Reliability because of how it provides a double checking mechanism but I ended up writing Relevance because of how it totals all the individual debtors allowing one figure to be posted to the GL/reports + listing the balances of the individual debtors would not aid in decision making and undermine Relevance blah blah
could it be both? :(
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before my brain explodes - was the QC for the PURPOSE of preparing a Debtors Schedule Relevance or Reliability?
I've seen majority post that it is Reliability because of how it provides a double checking mechanism but I ended up writing Relevance because of how it totals all the individual debtors allowing one figure to be posted to the GL/reports + listing the balances of the individual debtors would not aid in decision making and undermine Relevance blah blah
could it be both? :(
I think reliability is the better answer, but you certainly have a case and I think they might accept both. So as long as you explained it well, I'd think you got at least two marks :)
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i put reliability , but i know heaps of people who put relevance .
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I spoke to my teacher afterwards, and he said reliability was correct. But, i suppose both answers may be accepted.
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
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99.95% sure that it's Reliability.
The purpose of the Schedule is the fact that it acts as a double-checking mechanism.
That is the sole reason you prepare it. You already have a total in the Control account, so it's not like it makes it "easier because there is only one total to report etc. etc.". The total is already there, so the REAL reason for a Schedule is to check your figures.
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
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Just wondering if understandibility would pass, as the debtors schedule doesnt actually need to be compared or used, it acts as an easy layout for all users of the documents to comprehend their meaning, eg. business owner can see the value of debtors quite easily
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
You do realise you have to subtract discount expense? God I hope you didn't add it to debtors on the cash flow statement hahah
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I thought I cant be able to get A+ absolutly , why I work so hard but cant get a good feeling on the paper . so sad soul , I think 10 marks gone already , god , my school has one guy who may got 100percent this time , I want to tore up his exam paper！~~~~
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
You don't include the $2000 for cost of sales. It's not a cash receipt!!
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I don't see how relevance couldn't be granted considering this extract from the CAMBRIDGE VCE UNITS 3 & 4 ACCOUNTING TEXTBOOK.
BENEFITS OF USING CONTROL ACCOUNTS AND SUBSIDIARY LEDGERS
3. Ease of reporting
By preparing a Schedule, only one figure needs to be reported in the Balance Sheet, with insignificant details omitted. These details, such as the names and balances of individual debtors or creditors, would not affect decision making, so in reporting just the total, Relevance is upheld.
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I don't see how relevance couldn't be granted considering this extract from the CAMBRIDGE VCE UNITS 3 & 4 ACCOUNTING TEXTBOOK.
BENEFITS OF USING CONTROL ACCOUNTS AND SUBSIDIARY LEDGERS
3. Ease of reporting
By preparing a Schedule, only one figure needs to be reported in the Balance Sheet, with insignificant details omitted. These details, such as the names and balances of individual debtors or creditors, would not affect decision making, so in reporting just the total, Relevance is upheld.
Yeah, but the question is not asking for the benefits of using control accounts and subsidiary ledgers. It only asks about the QC that supports the preparation of the debtors schedule. This is completely different!!
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I said reliability as your debtor can cross-check their information with the document you gave them to ensure that it is all correct. The debtors schedule does not exactly help the business with decision making, so I don't think it would be relevance. But like on previous assessor reports, other answers could be correct as long as your reason is logical and you have supported it with enough evidence.
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
To work it out, you subtract the discount expense from debtors and add everything else EXCEPT Cost of Sales. So it was (9600-750)+3000+300+5200 = 17350
I hope that clears everything up for you :)
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99.95% sure that it's Reliability.
The purpose of the Schedule is the fact that it acts as a double-checking mechanism.
That is the sole reason you prepare it. You already have a total in the Control account, so it's not like it makes it "easier because there is only one total to report etc. etc.". The total is already there, so the REAL reason for a Schedule is to check your figures.
that's a relief! :P
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
why are you adding cos 2000 into your bank
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
why are you adding cos 2000 into your bank
my bad :P
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Its reliability my teacher does the solutions for the VCE exams and said that reliability is the answer as she has written the exams and its pretty obvious that it would be reliability if you went over other exams they would have probably said the same thing
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
Bok Bok, Cost of Sales is a stock flow =P
Yea, I said Reliability for cross checking too. It's a built in checking mechanism as the balance of the Debtors Control account should equal to the total of the sum of the balances of the subsidiary ledgers.it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
You do realise you have to subtract discount expense? God I hope you didn't add it to debtors on the cash flow statement hahah
He did Bank + Discount expense.
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
Bok Bok, Cost of Sales is a stock flow =P
Yea, I said Reliability for cross checking too. It's a built in checking mechanism as the balance of the Debtors Control account should equal to the total of the sum of the balances of the subsidiary ledgers.it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
You do realise you have to subtract discount expense? God I hope you didn't add it to debtors on the cash flow statement hahah
He did Bank + Discount expense.
WHO ARE YOU TROLL?
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it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
Bok Bok, Cost of Sales is a stock flow =P
Yea, I said Reliability for cross checking too. It's a built in checking mechanism as the balance of the Debtors Control account should equal to the total of the sum of the balances of the subsidiary ledgers.it was one of those questions where it could be both I think.
Personally i put reliability though.
ANYONE ELSE SEE HOW THE CASH RECEIPTS JOURNAL DIDNT TOTAL??!! ???
sorry to say it total
17350+750 does not equal 9600+2000+3000+300+5200
which is what they gave us
You do realise you have to subtract discount expense? God I hope you didn't add it to debtors on the cash flow statement hahah
He did Bank + Discount expense.
WHO ARE YOU TROLL?
U MAD?
Nah, I'm not troll *shifty eyes*
GUESS :DDDD
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You can make a case for relevance, reliability or understandability. I said understandailbity. If you really think about it the debtors schedule breaks down the list of debtors into a clear a more easy to comprehend format, which allows easier use for non accountants. However I'm still bewildered as to why the vcaa would put a question with 3 possible answers which can all be easily justified
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I don't really think Understandability is a valid answer, as it's more Relevance why we only report 1 balance for Debtors. The "best answer" thing yea?
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yeah the best answer was Reliability
however if you wrote Relevance + mentioned reporting 1 figure for Debtors etc, you would only lose 1 mark according to my teacher who was discussing about it with his examiner-friend
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damn, i was tossing up between relevance, comparability and understandability... and put comparability
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damn, i was tossing up between relevance, comparability and understandability... and put comparability
Okay, Comparability is a definite wrong answer, and Understandability is better explained with Relevance.
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Relevance can pretty much be used in any context, so I'd have to say Reliability is a better fit.