VCE Accounting Question Thread!

[Kuroyuki]

If a stock write-down occurs and you have to show it in the stock card, would you have to put the written down stock at the top of the balance column? Does it matter?

Had 11 units at $860 each
Stock write down for 2 units (SWD value=$110)

What would the balance column look like now?

Its never been actually covered. Some exams put it at the top some at the bottom. I don't think we can be penalised.
FIFO doesnt match the actual flow of stock anyway.
But i would put it in the top cuz the business would want to sell it first.
EDIT - BoredSatan faster than damoz

[BoredSatan]

Its never been actually covered. Some exams put it at the top some at the bottom. I don't think we can be penalised.
FIFO doesnt match the actual flow of stock anyway.
But i would put it in the top cuz the business would want to sell it first.
EDIT - BoredSatan faster than damoz

Due to constant refreshing of this page

Thought I might help out the accounting kiddies since ive done like nothing all year and so AN don't revoke my moderator powers

[IT_Failure]

If a stock write-down occurs and you have to show it in the stock card, would you have to put the written down stock at the top of the balance column? Does it matter?

Had 11 units at $860 each
Stock write down for 2 units (SWD value=$110)

What would the balance column look like now?

I had a question like that, and the solutions put it first (at the top)

[Damoz.G]

EDIT - BoredSatan faster than damoz

I was busy answering the other Question on the new Thread. Beat everyone on that Thread. MUHAHAHAHAHAH! LOL!

[BoredSatan]

I was busy answering the other Question on the new Thread. Beat everyone on that Thread. MUHAHAHAHAHAH! LOL!

[Lucho23]

Thanks guys I thought it would be put at the top because it is assumed to be sold first (hopefully)

Thanks!

[Damoz.G]

 

Waits anxiously for IT_Failure to post his next Question to beat everyone.

[IT_Failure]

With a "Define Accrual Accounting" question worth 2 marks, how do you get both marks?

Is this answer enough?:
Accrual accounting is the matching or revenue earned to expenses incurred within a reporting period so that profit can be accurately calculated.

Or do I need to add more such as:
Under accrual accounting transactions are recorded as they occur, which is not always the same time as  when the payment is made/received.

[BoredSatan]

Waits anxiously for IT_Failure to post his next Question to beat everyone.

I have to head back to bendigo soon so cant beat you

[Kuroyuki]

With a "Define Accrual Accounting" question worth 2 marks, how do you get both marks?

Is this answer enough?:
Accrual accounting is the matching or revenue earned to expenses incurred within a reporting period so that profit can be accurately calculated.

Or do I need to add more such as:
Under accrual accounting transactions are recorded as they occur, which is not always the same time as  when the payment is made/received.

I use to say just the first part. But a lot of 2013 exams are adding in the second part so just add it in just to be safe.

[Damoz.G]

With a "Define Accrual Accounting" question worth 2 marks, how do you get both marks?

Is this answer enough?:
Accrual accounting is the matching or revenue earned to expenses incurred within a reporting period so that profit can be accurately calculated.

Or do I need to add more such as:
Under accrual accounting transactions are recorded as they occur, which is not always the same time as  when the payment is made/received.

I like your first definition, but this is what I use: Accrual Accounting is determining Profit by matching Revenues earned against Expenses incurred in the Reporting Period in which they occur to accurately determine Net Profit.

[BoredSatan]

I use to say just the first part. But a lot of 2013 exams are adding in the second part so just add it in just to be safe.

this is one of those questions in which just copying the practice exam answers are the best..

Man this question actually first came up on my exam.. and I had no idea how to answer..

[abcdqdxD]

I like your first definition, but this is what I use: Accrual Accounting is determining Profit by matching Revenues earned against Expenses incurred in the Reporting Period in which they occur to accurately determine Net Profit.

I probably wouldn't use the word accurate. Very pedantic I know, but nothing is accurate in accounting as per my uni lecturer  

Accrual accounting is just a system of accounting, whether its more "accurate" compared to cash accounting is a matter for judgement. Obviously you wouldn't be penalised, but just my 2c.

[IT_Failure]

Thanks for the replies,
Another question: When does a Loan go into the General journal?
If the owner contributes a NCA which was bought with a loan, that goes into the general journal, but what happens if I used to start a business? (VCAA EXAM 1, 2012)

I included that loan in the general journal, which the solutions didn't. Does that mean it goes in the cash payments journal? There is no chq no. And no cash payments journal given. Unless the loan is still the responsibility of the owner, why is there no general journal entry?

Thanks!

[Damoz.G]

I probably wouldn't use the word accurate. Very pedantic I know, but nothing is accurate in accounting as per my uni lecturer  

Accrual accounting is just a system of accounting, whether its more "accurate" compared to cash accounting is a matter for judgement. Obviously you wouldn't be penalised, but just my 2c.

LOL! Fair enough. I just memorise definitions from the Textbook.