VCE Accounting Question Thread!

[dreambig]

Where is the contribution of an asset reported in the balance sheet?

[sin0001]

Assuming it is by the owner, it's classified as 'Capital Contribution' under Owner's Equity

[abcdqdxD]

Where is the contribution of an asset reported in the balance sheet?

The contribution of an asset will have TWO effects:

- an increase in total assets
- an increase in owner's equity (new capital)

Like sin mentioned, it is recorded under OE, however you must not forget to record the name of the asset on the asset side of the balance sheet. In the scope of VCE Accounting, all contributions of assets will be recorded under Non-current assets (with the exception being a contribution of cash, in which it would appear in current assets).

[dreambig]

So lets say im preparing a balance sheet, i must add the value of the asset to the Capital under Owners Equity as well as record the value and name of asset under assets?

[abcdqd]

So lets say im preparing a balance sheet, i must add the value of the asset to the Capital under Owners Equity as well as record the value and name of asset under assets?

yes

[sam.utute]

yes

Nice and simple

[sin0001]

In a Cash Flow Statement, which transactions come under the categories of financing & investing activities? I know that the operating activities  deals with the business' day to day transactions

[Kuchiki]

In a Cash Flow Statement, which transactions come under the categories of financing & investing activities? I know that the operating activities  deals with the business' day to day transactions

Investing activities relate to the buying and selling of non-current assets (e.g. Cash Purchase of Vehicle, Cash Sale of Computer, Payment to Sundry Creditor).

Financing activities result in a change in the business' financial structure (e.g. Capital Contribution, Drawings, Loan, Loan Repayment).

[sin0001]

Thanks Kuchiki
Also, which study guide do you think is better, The leading edge version or NEAP smartstudy guide?

[abcdqdxD]

Personally, I didn't use any study guides. I just did lots and lots of questions from different resources (from friends going to different schools, teachers etc.)

I did buy checkpoints, but I didn't end up using them at all. Needless to say, they were a total waste of money.  Questions were ripped off from past VCAA exams, while some of their solutions were questionable.

Although I don't have first hand experience with Leading edge or NEAP, I hear NEAP is very very good. Having done NEAP practice exams, I find them to be aimed at the top-end students

[Kuchiki]

Yeah, I didn't use any study guides, either.

I got extra questions and past SACs from my teacher, and I went to a revision lecture before the mid-year (I also emailed one of the lecturers afterward, who sent me a lot of practice exams). Basically, I just gathered as many free practice exams as I could (this might be difficult this year due to the new study design, but the past exams are still worth doing).

[dreambig]

Does the conservatism principle include no estimations?

[abcdqdxD]

Conservatism states that losses must be recognised when probably and gains recorded only when certain. This is done to avoid overstating assets and owner's equity. This is linked to the Lower of cost/NRV rule.

It doesn't have anything to do with estimations to the best of my knowledge. But you could probably link 'no estimates' to Reliability - all transactions must be verifiable by source documents to ensure it is free from error and bias (and I guess free from estimations as a result).

Hope this helps

[awesomejames]

Hey guys,

One question, does accounting scale up this year or is there no scale?

It's because when I put my hypothetical scores into the atar calc it says it scales up by 1 at 35.

Is this true?

[abcdqd]

2012 scaling report says no scaling at 35 but scaling +1 if 40 or above