Accounting Question Thread

[mmmmm]

Question:

Excluding static measure, explain one limitation of ratio analysis.

Easy question, I know.

Cheers.

Umm. It's based on historical data, so it doesn't necessarily mean that it'll happen in the future.
(I'm just half guessing)

[LFTM]

I've noticed they've asked what liquidity is like twice in the last three years, what do you guys reckon it will be this year?
Profitability? efficiency?

[eeps]

Efficiency, I reckon. It's rarely asked at all so I'd be guessing it may well be this year.

[lilaznkev1n]

Liquidity: The ability of the business to meet its short term debts as they fall due.
Efficiency: The ability of the business to manage its debtors, creditors and stock.
Profitability: The ability of the business to earn a profit, measured by comparing its profit against a base such as sales, assets or owner's equity.

I reckon it will be profitability since it is the hardest definition.

[eeps]

Do you reckon VCAA will not give formulas like they did in last year's paper?

[lilaznkev1n]

yeah im not sure about that.
they provided it for every year before last year. I think the trend will continue so everyone should memorize the forumlas..

[eeps]

LOL hard question I've come across - from the NEAP Smartstudy Book.

Explain why the discount offered to Weasley is not deducted from the sales price of computers that were sold on 6 June 2008. (2 marks)

6 Jun - Inv. 22 - Sold 10 computers to Weasley on credit for $250 + $25 GST each. A 2% discount is offered if payment is received within 10 working days.

I have no idea...

Thanks, if anyone knows.

[lilaznkev1n]

LOL hard question I've come across - from the NEAP Smartstudy Book.

Explain why the discount offered to Weasley is not deducted from the sales price of computers that were sold on 6 June 2008. (2 marks)

6 Jun - Inv. 22 - Sold 10 computers to Weasley on credit for $250 + $25 GST each. A 2% discount is offered if payment is received within 10 working days.

I have no idea...


Thanks, if anyone knows.

Its because it is not certain that the debtor (Weasley) will pay the amount owing withing 10 days to receive a 2% discount. Therefore the discount shouldn't be deducted from the sales price at the date that it is sold as there is no certainty that the debtor will receive the discount.

[eeps]

Its because it is not certain that the debtor (Weasley) will pay the amount owing withing 10 days to receive a 2% discount. Therefore the discount shouldn't be deducted from the sales price at the date that it is sold as there is no certainty that the debtor will receive the discount.

Nice answer. =)

Thanks!

[TyErd]

it's good that you can kinda bullshit your way through most theory questions that's why i do accounting

[mmmmm]

I hope they put liquidity on the exam.

[naved_s9994]

CPAP 2010 Unit 4

Q1.1.1. The Variance Report.

In  the Variance column, they put brackets around negative variances?
I never learnt it like that. It was always, right the variance in positive and state whether it was
F or U ?

[eeps]

In  the Variance column, they put brackets around negative variances?
I never learnt it like that. It was always, right the variance in positive and state whether it was
F or U ?

Same - I was never taught that way. I don't think you need to put brackets around negative variances - just put F or U.

[kakar0t]

Guys, i'm referring to the final question on the tssm 2010 exam.

When there is a sales return, do we deduct the cost price of the sales return from the cost price given in the question? (do we do this as a general rule of thumb?)

[naved_s9994]

Stupid trial examinations! They ALWAYS never check their work, hence always get UG's in terms of their quality! I mean too say, they suck with solutions generally.