Accounting Question Thread

[Yitzi_K]

How many exams have people done/or are planning to do for Accounting?

Done 5 so far, will have done around 20 possibly 25 by the exam.

[darcy42]

I have also done 5, as I was away until yesterday since the start of the holidays.
Yeah I'll probably get around 20 done. They are aready starting to annoy me.

[eeps]

Done 5 so far, will have done around 20 possibly 25 by the exam.

I have also done 5, as I was away until yesterday since the start of the holidays.
Yeah I'll probably get around 20 done. They are aready starting to annoy me.

Good Luck!

Which exams are people finding the hardest?.. obviously this is a subjective question, but feel free to say which ones.

Surprisely out of the exams I've done so far, I found the VCAA exams harder than most - 2007 was rather different. I found COMPAK 10', 08' and CSE 08' exams quite easy. TSSM are just lame... that's just me though. NEAP and Insight are probably in the middle range for me... not too hard, yet not too easy.

(On a sidenote, I love TSFX. LOL. I went to their lectures (Thursday + Friday)... their notes are pretty good. 3 books filled with notes and past exam questions! absolute gold.)

[kakar0t]

Neap exams are killer IMO, very comparable to VCAA so i suggest doing NEAP strictly under exam conditions!

[eeps]

Neap exams are killer IMO, very comparable to VCAA so i suggest doing NEAP strictly under exam conditions!

Thanks for the heads up, will do! I've got hardly any NEAP exams... I just got the 08' one. I think the NEAP exams are probably the closest to the actual exam in terms of difficulty and lay-out.

[sam.utute]

This is from CSE 2008 Exam 2 Question 2.3.4

For the Year Ended          2007                            2008
WCR                        32000/8000=4:1         32000/10000=3.2:1
QAR                        10000/8000= 1.25:1      8000/9000=.88:1
 
Question:
2.3.4 Identify one reason for the change in the Quick Asset Ratio.  :idiot2:

My answer:
The business increased its stock on hand proportionally compared to 2007, and suffered an increase in current liabilities including bank overdraft. As stock is not included in the Quick Asset Ratio calculations due to its inability to be converted quickly into cash, this Ratio decreased as well.
My usual response is increase in stock, no effect on QAR OR increase in prepayments, no effect on QAR

The Suggested Solution:
an increase in bank overdraft OR an increase in the amount of stock held.

Some Teacher's scribbled on solution:
Quick Assets decreased, no change in Urgent Liabilities OR Quick Assets did not change but Urgent Liabilities increased.

If we were using the teacher's solution (which I think is most correct), what would be the example of the quick asset and the urgent liability. Obviously, from the table, quick assets decreased by $2000 and urgent liabilities increased by $1000.

Help anyone?

[eeps]

A Quick asset that may have decreased is Debtors Control. I think that's the only Current asset besides Stock and Prepayments.

An urgent liability that may have increased: Creditors Control/GST Clearing/Accrued Expense(s). These could be examples which increased urgent liabilities.

You could mention a few examples in your answer to show the marker that you fully understand the question.

[eeps]

Question:

This was a question that I came over... it was a different sort of question.

Explain why the "lower of cost and net realisable value" must be applied to individual stock lines and not the entire stock.

I don't the answer myself, so if anyone wants a crack at it... feel free to.

[_avO]

Not all stock lines have been affected by some way so as to be written down, for example being obsolete or out of fashion, so it is not relevant to apply the lower of cost and net realisable value on the entire stock of the business as it is not appropriate to do so

o.0 where did u see this question

[eeps]

The question was from the TSFX booklet/notes which I got from their lectures.

[eeps]

Question:

This is from the 2007 TSSM Paper.

Q. 2.5.3 - Explain why the working capital ratio comparsion to the industry average is not necessarily a favourable result to the business. (2 marks)

Noting that in 2007, WCR was 280% whereas the Industry Average was 160%. Could someone help?

Thanks.

[_avO]

too much stock on hand could mean deterioration, chance of stock loss, theft, damage etc.
too much cash means that the business is not investing it properly to maximise profit
thus not using assets as efficiently as they could be used

too less current liabilities means the business is not borrowing or purchasing stock on credit (could mean that the owner is investing more cash into the business, which is a bad thing)

[eeps]

too much stock on hand could mean deterioration, chance of stock loss, theft, damage etc.
too much cash means that the business is not investing it properly to maximise profit
thus not using assets as efficiently as they could be used

too less current liabilities means the business is not borrowing or purchasing stock on credit (could mean that the owner is investing more cash into the business, which is a bad thing)

Thanks!

[eeps]

What are the chances of getting a score of 40+ with:

• GA 1: A (low)
• GA 2: A+ (mid-high)
• GA 3: A+ (mid-high)

Thanks.

[_avO]

I would say it is a likelihood depending on what percentage of people you did better than for exam 2. Because you need approx top 8% overall to get 40 so if you get top 3% for SACs and exam 2 then you might 40+