VCE Accounting Question Thread!

[abcdqdxD]

Just to add onto what BoredSaint has said:

Increasing stock turnover effectively means you are converting stock to sales in a quicker timeframe. If stock levels are not replenished quickly enough, then overall stock balance will be less. As a result, lower stock levels may indicate improvement in the STO.

Theoretically, if you hold less stock on hand that is not due to an improvement in your ability to convert stock to sales, then STO won't increase. (Although this is very rare). For example, a business may order less stock due to lower consumer demand, and this doesn't actually improve the STO.

As for ROA, assuming your STO increased because you're converting stock to sales on a more regular basis, then net profit will increase in the form of sales. Since ROA = Net profit/Assets, an improvement in the STO may have a favourable effect on ROA.

[nikil.v]

what is the purpose of preparing:
-budgeted balance sheet
-budgeted income statement
-budgeted cash flow statement ?

[Damoz.G]

what is the purpose of preparing:
-budgeted balance sheet
-budgeted income statement
-budgeted cash flow statement ?

Re-posting....

2 most important things:
* Planning - Indicates future requirements of the firm. Relates to issues such as Loan Repayments, and whether the business will be able to meet these cash requirements and short-term debts as they fall due.

* Decision-Making - Provides a standard against which trading performance can be measured. It allows problem areas to be identified, and then correct action to be taken by the owner.

[noone29]

Hey guys I know it's a bit late but, are we always suppose to assume that there is a GST settlement when reconstructing accounts? I did one of the TSSM ones and it recorded GST Settlement but gave no indication that there was one in the question.

[Damoz.G]

Hey guys I know it's a bit late but, are we always suppose to assume that there is a GST settlement when reconstructing accounts? I did one of the TSSM ones and it recorded GST Settlement but gave no indication that there was one in the question.

No. You don't assume that there is a GST Settlement made. If the Budgeted Period is 12 months, then there probably is a GST Settlement so pay close attention to the information given in the question during Reading Time.

But if there was a GST Settlement, it would be stated or displayed somehow for you to notice.

TSSM Trial Exams have a lot of mistakes in the questions and solutions so probably don't do them.

[noone29]

No. You don't assume that there is a GST Settlement made. If the Budgeted Period is 12 months, then there probably is a GST Settlement so pay close attention to the information given in the question during Reading Time.

But if there was a GST Settlement, it would be stated or displayed somehow for you to notice.

TSSM Trial Exams have a lot of mistakes in the questions and solutions so probably don't do them.

Alright, thanks so much! Good luck tomorrow (not that you need it, expecting a 50 from you mate ) and good luck to everyone else!

[IT_Failure]

Hey i have a question. In a cash flow statement, when payment of an accrued expense or revenue occurs, can you add it to the inflow/outflow, or is it seperate?
Eg. Accrued Wages from last reporting period are paid ($3000) and wages paid this reporting period is $27000. Which method is preferred, $30000 wages operating outflow, or the figure split into 2 outflows, accrued wages: $3000 and Wages: $3000.

I'm unsure which method vcaa prefers, or are both correct?

[Lucho23]

Hey i have a question. In a cash flow statement, when payment of an accrued expense or revenue occurs, can you add it to the inflow/outflow, or is it seperate?
Eg. Accrued Wages from last reporting period are paid ($3000) and wages paid this reporting period is $27000. Which method is preferred, $30000 wages operating outflow, or the figure split into 2 outflows, accrued wages: $3000 and Wages: $3000.

I'm unsure which method vcaa prefers, or are both correct?

Split 'em! Nah actually it's better to distinguish them as paying for an accrued wages expense is not the same as paying for a wages expense if you get what I mean

[Damoz.G]

Alright, thanks so much! Good luck tomorrow (not that you need it, expecting a 50 from you mate ) and good luck to everyone else!

HAHA! As I said, I'm just hoping for a 45, don't think I can get a 50. =/

Hey i have a question. In a cash flow statement, when payment of an accrued expense or revenue occurs, can you add it to the inflow/outflow, or is it seperate?
Eg. Accrued Wages from last reporting period are paid ($3000) and wages paid this reporting period is $27000. Which method is preferred, $30000 wages operating outflow, or the figure split into 2 outflows, accrued wages: $3000 and Wages: $3000.

I'm unsure which method vcaa prefers, or are both correct?

Split them - They are two expenses from different Reporting Period. Its more useful for decision-making, thus supporting Relevance.

[IT_Failure]

Thanks! I usually split them, but saw a practice exam where it was put together as one figure in the solutions.

Good luck on that 50 Damoz! Or maybe 49 (Accounting is near impossible to ace!)

Does anyone know how to predict a study score? What would a 90% get?

[BoredSatan]

Good luck to you all!!!

I'm expecting everyone to get 50's except Damoz, hopefully you can get that 30

[Damoz.G]

Good luck to you all!!!

I'm expecting everyone to get 50's except Damoz, hopefully you can get that 30

Now where's that Vote Down button. Hmmmm...

[sin0001]

Split 'em! Nah actually it's better to distinguish them as paying for an accrued wages expense is not the same as paying for a wages expense if you get what I mean

Split them - They are two expenses from different Reporting Period. Its more useful for decision-making, thus supporting Relevance.

So would you do the same in an Income Statement (wait is it called Profit and Loss Statement now or what?), like report Accrued Wages incurred seperately Wages paid for and incurred?

[abcdqd]

No, wages expense is just wages expense (all wages that have been incurred over the period) 

P.S.: Good luck to y'all, but it looks like a lot of you don't even need it haha

[sin0001]

No, wages expense is just wages expense (all wages that have been incurred over the period) 

Thanks!