VCE Accounting Exam - 08/11/19 - Discussion/Questions/Solutions

[Joseph41]

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[ProfitBirb]

Not a very good exam in my opinion. Saw very few of the usual trip ups I’d always miss so most of it was straightforward.

The “explain the accountant’s comment” was badly worded. I get you were meant to evaluate what’s right and wrong about it and I did so but that was not at all made clear. Ah well happy with what I did hopefully I didn’t do anything dumb along the way.

[paca]

Anyone got answers for the bda question 4

[Seamus Wong]

Yeah I reckon the exam was a bit too easy. Every trick that I expected they would pull was there, but there wasn't enough of those tricks, which is not good cos it makes it harder to get to the far right of the bell curve. I hope I didn't make any small arithmetic mistakes... cos that would screw my score up. All in all, pretty happy, but I know that I could easily have gained an extra two marks already from small arithmetic mistakes

[exoticspice]

it seems there is an error in question 1 e)

[Seamus Wong]

it seems there is an error in question 1 e)

Why? what is it?

[exoticspice]

where it asks about the working capital ratio and quick asset ratio

[Seamus Wong]

yeah that question was fucked. I forgot how all the ratio's moved but my teacher explained it to me at the end. My answer that I just posted (and removed) was completely wrong. As long as you didn't say that the decreased working capital was a result of lower levels of inventory on hand, you should only lose like 1 mark (assuming you didn't address the trend in inv turnover)

[jnlfs2010]

where it asks about the working capital ratio and quick asset ratio

it literally pretty much makes no sense. i said it was due to lots of losses and writedowns rip

[soneo5two2]

Question 1e doesn't really make sense, if they purchased more inventory then WCR should increase, prepayments of expenses shouldn't cause such drastic change in the ratios. It can't be increase liabilities because both would change. Really confused what VCAA expects for this question. I have a feeling they expected us to write about something inventory related otherwise there is no use of the inventory turnover provided. Hopefully the question is a mistake and isn't counted or something.

[Seamus Wong]

Does anyone know whether or not we'll lose marks if we say 'increase'/'decrease' instead of 'slower'/'faster' for the indicators? Cos I wrote that the Budgeted Cash Flow Cover (question 3) decreased, instead of 'got slower'

[soneo5two2]

Does anyone know whether or not we'll lose marks if we say 'increase'/'decrease' instead of 'slower'/'faster' for the indicators? Cos I wrote that the Budgeted Cash Flow Cover (question 3) decreased, instead of 'got slower'

Study design states faster/slower but I am not sure they will take away marks for it. Maybe they will take away one mark maximum if they are marking harshly.

[Lupewholes]

What did everyone answer for question 6a regarding the machinery and installation? I thought that the installation should count as part of the machinery cost but given we had six lines and there were two separate source documents I broke it up into two separate entries.

[liam.l02]

What did everyone answer for question 6a regarding the machinery and installation? I thought that the installation should count as part of the machinery cost but given we had six lines and there were two separate source documents I broke it up into two separate entries.

yeah the installation is part of the overall cost of the machinery and you're right, it is two separate entries. But the second entry you debit "Machinery" as it is a cost that lasts for the entire life for the Non-current asset.

[Seamus Wong]

yeah the installation is part of the overall cost of the machinery and you're right, it is two separate entries. But the second entry you debit "Machinery" as it is a cost that lasts for the entire life for the Non-current asset.

Would u lose marks if you put it all in the one entry? I feel like you shouldn't cos they were both paid for with cash, so the entries would all be the same.