2013 Unit 3 and 4 Accounting Exam Guide

[huss48]

Unit 3 and 4 Accounting Exam 2013 "New Additions":
- General Journal entries for: Contribution of non-current assets by the owner at agreed value and Use of stock for advertising purposes.
- The distinction between historical cost and agreed value in relation to non-current assets.
- Posting to the general ledger from the general journal and special journals on a monthly basis.
- Process of balancing the general ledger and subsidiary ledger accounts in preparation for the next reporting period.
- Reasons for using control accounts.
- Internal control procedures and practices of this accounting system.
- Classified Accounting reports: Cash Flow Statement , Income Statement and Balance Sheet.

Key Skills "Must Know":
- MUST be able to also REPORT accounting information.
- MUST be able to EXPLAIN and APPLY the characteristics and principles underlying the recording of financial data and the reporting and presentation of   accounting information.
- MUST be able to DISCUSS the effect of financial transactions on the accounting equation and accounting reports.
- MUST be able to PREPARE, EXPLAIN and INTERPRET Accounting reports.
- MUST be able DISTINGUISH between cash and profit and EXPLAIN the effect on accounting reports.
- MUST be able to DISCUSS the function of the various aspects of the accounting system for a single activity trading business.
- Distinguish between product and period costs.
- Compare alternative methods of depreciating non-current assets.
- Justify the selection of alternative depreciation methods
- Explain and interpret accounting reports and graphical representations
- Prepare budgeted accounting reports to assist in decision making.
- Analyse and interpret accounting reports, graphical representations and non-financial information.
- To evaluate the performance of a business.
- Discuss strategies to improve the profitability and liquidity of the business.
- Discuss the implications of changes in the level of debt ratio.

Exam Format:
- Multiple questions
- Stand alone theory question(s)
- Higher order skills being examined
- Aspects of the accounting system
- Understanding what they are and how they function
- Strengths and weaknesses of these aspects

Advice
- You need to be able to reconstruct accounts quickly and easily.
- Learn templates for debtors control, creditors control, stock control, capital, disposal of NCA’s and expenses and revenue accounts affected by accruals and prepayments. (Journals & ledgers)
- Be familiar of the layout of accounting reports in cash flow, income statement and balance sheet.
- Ensure that you quickly determine the length of the reporting period for scenario one and two during reading time. This will impact directly on BDA calculations and report preparation.
- Practise identifying the advantages and disadvantages of various accounting issues in preparation for DISCUSS questions on the exam. For example: Historical Cost v Agreed Value; Reducing Balance v Straight Line Depreciation; Control Accounts; Product Costs v Period Costs; higher or lower Debt Ratios.

Any other important information, please add below.

[Damoz.G]

Awesome list, huss!

Also, just to add to it, Bank Statements are a new thing that got added this year as well.

[unfamila]

What do we have to do with a bank statement?

[Damoz.G]

What do we have to do with a bank statement?

Be able to recognise and interpret transactions, and possibly convert it into the General Ledger Accounts. Also need to remember that the Debits and Credit Entries are reversed for a Bank Statement because the Bank does it from the perspective of you being a Creditor to them.

[unfamila]

We have covered bank statements at all...
Do you know of any exams that have bank statements in them?
Thanks for your help

[Damoz.G]

We have covered bank statements at all...
Do you know of any exams that have bank statements in them?
Thanks for your help

It was introduced this year, so there are no Exams with a question on it. =/

[TimmyC]

It was introduced this year, so there are no Exams with a question on it. =/

lol then why wasn't it in my textbook? :p

[Damoz.G]

lol then why wasn't it in my textbook? :p

Because it is new this year!

[TimmyC]

Because it is new this year!

well thats kinda stupid haha, how are we supposed to know what to do 

[unfamila]

The study design only states under key knowledge:"source and business documents for a trading business, including cash receipts, cheque butts, sales
and purchases invoices, statements of account, memos, bank statements".
 If we get a question on bank statements how will i know what to do?

[Damoz.G]

Your teacher was supposed to you teach you that.

My teacher is an assessor so we learnt about it at the end of Term 4, just before we finished so that it was fresh in our minds.She predicts that there will be a question on the Exam asking us to recognise transactions and then possibly post them to the General Ledger accounts.

[teexo]

we didn't learn about bank statements either /:
what else do you predict will be asked on this year's exam?

[Damoz.G]

we didn't learn about bank statements either /:
what else do you predict will be asked on this year's exam?

In terms of Bank Statements or in general?

[sam.utute]

we didn't learn about bank statements either /:
what else do you predict will be asked on this year's exam?

Don't worry about the Bank Statements bit. If they do come up, the question won't be difficult (I can almost guarantee that)

[Kuroyuki]

Just a bit extra on bank statements
Sometimes there might an interest earning account in the bank for the business. And they might ask you do an accrued adjustment, then a cash receipt journal for when the interest is received. Just make sure if they don't give you a specific receipt number, write "B/S" in the receipt number column.