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Author Topic: VCE Accounting Question Thread!  (Read 378622 times)  Share 

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eeps

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VCE Accounting Question Thread!
« on: December 24, 2010, 07:34:12 pm »
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VCE ACCOUNTING STUDIES Q&A THREAD

To go straight to posts from 2020, click here.

What is this thread for?
If you have general questions about the VCE Legal Studies course or how to improve in certain areas, this is the place to ask!


Who can/will answer questions?
Everyone is welcome to contribute; even if you're unsure of yourself, providing different perspectives is incredibly valuable.

Please don't be dissuaded by the fact that you haven't finished Year 12, or didn't score as highly as others, or your advice contradicts something else you've seen on this thread, or whatever; none of this disqualifies you from helping others. And if you're worried you do have some sort of misconception, put it out there and someone else can clarify and modify your understanding! 

There'll be a whole bunch of other high-scoring students with their own wealths of wisdom to share with you, including TuteSmart tutors! So you may even get multiple answers from different people offering their insights - very cool.


To ask a question or make a post, you will first need an ATAR Notes account. You probably already have one, but if you don't, it takes about four seconds to sign up - and completely free!


Original post
Following the success of the Accounting Question Thread, this last year (2010) that I made - I've decided to make another one. Post any questions you may have on this thread, and I'm sure people will help you out. It will save people the hassle of making new threads every time they have a question. Don't hesitate to ask a question, even if you think it is stupid or whatever - that's the worst thing you can do - not asking when you're unsure.

Having done Accounting this last year (2010), I can help out from time to time (though, I do have my own subjects as well). I'm sure the Business Studies moderators can help out more than I can - all of them (_avO, sam.utute and mba) did Accounting as well, so you can be sure that they know their stuff.

Good luck and post away!
« Last Edit: February 26, 2020, 03:24:20 pm by PhoenixxFire »

mba

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Re: VCE Accounting Question Thread!
« Reply #1 on: December 24, 2010, 07:55:57 pm »
+1
This was an awesome thread set up by EPL last year so I'm sure it will help everyone doing Accounting next year. Post all your questions because between us all we should definitely (let's hope!) get an answer for you.
« Last Edit: December 24, 2010, 08:12:58 pm by mba »
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eeps

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Re: VCE Accounting Question Thread!
« Reply #2 on: December 24, 2010, 08:05:43 pm »
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Exactly that. Even though you guys are competing against each other, there is no harm in helping each other out. It will only make you better.

If you know the answer to a question, then good for you - consolidates your knowledge. If you have a question that you're unsure of, then you can get it answered here. It's really a "win-win" for everyone involved. In most cases, your question may have already been asked!

I reinforce what mba said, between us (anyone & everyone), you'll 99.9% of the time get an answer. That 0.1% may be due to laziness or some left-field question which isn't necessarily/covered-in-detail on the course. In any case, we'll try to answer your questions as best we can!

chuckjefster90

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Re: VCE Accounting Question Thread!
« Reply #3 on: December 28, 2010, 12:31:43 pm »
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Bit confused, what is the role/purpose of accounting?


Thanks! :D

chuckjefster90

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Re: VCE Accounting Question Thread!
« Reply #4 on: December 28, 2010, 01:59:34 pm »
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Is it that financial data refers to raw facts and figures, on which financial information will be based on, and that this data becomes financial information, that once sorted and process is more useable and understandable information?


Does anyone have a more clearer answer??

Thanks

mba

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Re: VCE Accounting Question Thread!
« Reply #5 on: December 28, 2010, 02:18:20 pm »
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Quote
Bit confused, what is the role/purpose of accounting?

The role of an accounting system is to help decision makers record, classify and report financial information. It provides a means to asssit the decision making capabilities of stakeholders (owners/managers/creditors) when it comes to making decisions relating to the business, i.e.: managing expenses, deciding whether enough revenues are being generated, assessing the need for a new employee, deciding whether a marketing program has been succesful.

Quote
Is it that financial data refers to raw facts and figures, on which financial information will be based on, and that this data becomes financial information, that once sorted and process is more useable and understandable information?


Does anyone have a more clearer answer??

Thanks

Pretty much the same as what you wrote above, it is pretty simple so I don't know another way of explaining the difference. Pretty much the data are the numbers entered into the records (i.e.: journals) and the info (B/S, PLS, CFS) is created from this data so people with a non-financial background can use the info to try and make rational accounting decisions.


----

Financial data is used in the recording process, i.e.: an invoice received from a suppler is entered into the accounting system to reflect a transaction that alters the accounting equation. The combination of this data (that has been entered into the entities records, i.e.: CRJ and CPJ) is then used to create financial information.

 Financial information (i.e.: B/S, Profit & Loss and CFS) can be used by by decision makers (i.e.: business owners), as the presentation of financial information can increase the ability of users of the financial information to make rational accounting decisions, as they may not be able to understand the raw finnacial data itself but can understand a well presented balance sheet or cash flow statement.

« Last Edit: December 28, 2010, 07:06:48 pm by mba »
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EMAHER

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Re: VCE Accounting Question Thread!
« Reply #6 on: January 03, 2011, 03:09:05 pm »
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Hey all :)
I was wondering if anyone could help me with the question "referring to the definition of an asset, explain why one should recognize goodwill as an asset".
Thanks!
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davyp3

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Re: VCE Accounting Question Thread!
« Reply #7 on: January 03, 2011, 04:10:09 pm »
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Goodwill will lead to future economic benefits for the business.

If the business has goodwill, customers will return thus increasing sales for the firm. Therefore it is of great value leading to future economic benefits.

I wouldn't think you would place it in the balance sheet though.

What do you think fellow VNer's?

pop0008

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Re: VCE Accounting Question Thread!
« Reply #8 on: January 03, 2011, 04:25:07 pm »
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Can anyone please explain what "shelving" means?


Thanks
xxkp

eeps

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Re: VCE Accounting Question Thread!
« Reply #9 on: January 03, 2011, 05:07:41 pm »
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Can anyone please explain what "shelving" means?

Thanks
xxkp

Shelving is like an item which a business purchases (i.e. John's business "Pots R Us" bought shelvings for $5,000). It's commonly used in many Accounting questions. It's not really necessary to know what the item actually is, but if you want, here is a picture of a shelving.

davyp3

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Re: VCE Accounting Question Thread!
« Reply #10 on: January 03, 2011, 05:44:04 pm »
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It's a non-current asset. if you were uncertain about its classification.

eeps

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Re: VCE Accounting Question Thread!
« Reply #11 on: January 03, 2011, 08:41:08 pm »
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Goodwill will lead to future economic benefits for the business.

If the business has goodwill, customers will return thus increasing sales for the firm. Therefore it is of great value leading to future economic benefits.

I wouldn't think you would place it in the balance sheet though.

What do you think fellow VNer's?

I agree with that. From what I learnt this year in Accounting, goodwill is an intangible asset - so you wouldn't put it in the Balance Sheet.

Fyrefly

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Re: VCE Accounting Question Thread!
« Reply #12 on: January 03, 2011, 08:46:17 pm »
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Quote
Goodwill will lead to future economic benefits for the business.

If the business has goodwill, customers will return thus increasing sales for the firm. Therefore it is of great value leading to future economic benefits.

I wouldn't think you would place it in the balance sheet though.

What do you think fellow VNer's?

Because goodwill fits the definition of an asset:

An asset is a resource:
(a) controlled by an entity as a result of past events; and
(b) from which future economic benefits are expected to
flow to the entity.

In fact, goodwill is (by definition) an unidentifiable, intangible asset.

However, goodwill is not recognised in the balance sheet of an entity because of its very nature. It is unidentifiable, and thus cannot by reliably measured in most circumstances. Goodwill is not recognised in the balance sheet of an entity unless said entity has been purchased at a value in excess of its net assets. In such a case, the excess value is recognised as goodwill. Also, goodwill is no longer amortised, but is tested annually for impairment. This is uni stuff though... I don't understand why you've been asked about goodwill.
« Last Edit: January 04, 2011, 05:57:46 pm by mba »
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Fyrefly

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Re: VCE Accounting Question Thread!
« Reply #13 on: January 03, 2011, 08:47:05 pm »
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Goodwill will lead to future economic benefits for the business.

If the business has goodwill, customers will return thus increasing sales for the firm. Therefore it is of great value leading to future economic benefits.

I wouldn't think you would place it in the balance sheet though.

What do you think fellow VNer's?

I agree with that. From what I learnt this year in Accounting, goodwill is an intangible asset - so you wouldn't put it in the Balance Sheet.

Identifiable intangible assets go in the balance sheet.
Unidentifiable intangible assets don't (read: goodwill).
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EMAHER

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Re: VCE Accounting Question Thread!
« Reply #14 on: January 03, 2011, 09:44:31 pm »
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Thanks all :)
Yeah, the question confused me, but I guess I'll just talk about how it is a future economic benefit, past events etc.
Thanks again =]
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