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March 28, 2024, 11:44:51 pm

Author Topic: VCE Accounting Question Thread!  (Read 374701 times)  Share 

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One Step at a Time

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Re: VCE Accounting Question Thread!
« Reply #1605 on: November 03, 2016, 08:10:43 pm »
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Got it, thanks so much The Usual Student!  :P

Also, are there any differences between the benefits of variance reports and budgeted reports? Is it the same: identify possible problems, take corrective action, etc.?

One Step at a Time

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Re: VCE Accounting Question Thread!
« Reply #1606 on: November 03, 2016, 08:47:17 pm »
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Also, on a totally different topic (still accounting related haha), does changes in quantity traded change Net Profit Margin?  ???

Cornrow Kenny

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Re: VCE Accounting Question Thread!
« Reply #1607 on: November 03, 2016, 09:29:06 pm »
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Also, on a totally different topic (still accounting related haha), does changes in quantity traded change Net Profit Margin?  ???
What do you mean "quantity"? NPM is Net Profit/Sales, so if you sell less stock at a time, but overall Sales are the same, then it wouldn't affect NPM.

Sorry I don't have an answer for your other question, I need to look over some of that stuff. Best of luck for tomorrow!
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One Step at a Time

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Re: VCE Accounting Question Thread!
« Reply #1608 on: November 03, 2016, 09:41:59 pm »
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What do you mean "quantity"? NPM is Net Profit/Sales, so if you sell less stock at a time, but overall Sales are the same, then it wouldn't affect NPM.

Sorry I don't have an answer for your other question, I need to look over some of that stuff. Best of luck for tomorrow!

Sorry I wasn't clear! I meant how many units are sold. Does that affect NPM?

Same goes, no doubt you'll smash it!   ;D Thanks for all your help!

Cornrow Kenny

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Re: VCE Accounting Question Thread!
« Reply #1609 on: November 03, 2016, 09:50:42 pm »
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Sorry I wasn't clear! I meant how many units are sold. Does that affect NPM?

Same goes, no doubt you'll smash it!   ;D Thanks for all your help!
Just think about these things logically and in terms of the formula.

If less units sold means less revenue from Sales, then yes it would effect NPM. However a business could just order the same amount just in smaller quantities, thus having no effect. Or it could order more increasing NPM etc it depends on the question.

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One Step at a Time

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Re: VCE Accounting Question Thread!
« Reply #1610 on: November 03, 2016, 10:19:08 pm »
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I thought that cost of goods sold would also decrease by proportionally the same amount (no change in mark-up), so NPM wouldn't increase? Or is that logic totally off haha  :P

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Re: VCE Accounting Question Thread!
« Reply #1611 on: January 11, 2017, 07:38:05 pm »
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Explain the importance of stock cards when sales are recorded in the special journals
:0 :)

epichedgehog

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Re: VCE Accounting Question Thread!
« Reply #1612 on: February 07, 2017, 06:26:03 pm »
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Hi everyone,

I'm having a little trouble with GST refunds - the textbook says for example, if a business purchases an expensive non-current asset, then GST paid during purchases could be greater than GST received from sales, and therefore the business will be owed GST by the ATO (GST refund). But why is it a non-current asset? Why not an expensive current asset (e.g. equipment that is expected to be used up within the next 12 months)?

Thanks!
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omcgil15

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Re: VCE Accounting Question Thread!
« Reply #1613 on: February 07, 2017, 07:35:31 pm »
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Hi everyone,

I'm having a little trouble with GST refunds - the textbook says for example, if a business purchases an expensive non-current asset, then GST paid during purchases could be greater than GST received from sales, and therefore the business will be owed GST by the ATO (GST refund). But why is it a non-current asset? Why not an expensive current asset (e.g. equipment that is expected to be used up within the next 12 months)?

Thanks!
Purchasing a non current asset is simply an example used. More generally, it can be said that GST on purchases exceeding GST on sales will mean the business is owed money from the ATO. Also, equipment is assumed to be used beyond 12 months, businesses purchase equipment to last for a lot longer than 12 months
BCOM @ UniMelb - 3rd Year Accounting/Finance Majors

epichedgehog

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Re: VCE Accounting Question Thread!
« Reply #1614 on: February 07, 2017, 08:08:39 pm »
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Purchasing a non current asset is simply an example used. More generally, it can be said that GST on purchases exceeding GST on sales will mean the business is owed money from the ATO. Also, equipment is assumed to be used beyond 12 months, businesses purchase equipment to last for a lot longer than 12 months

Ah, that makes sense. Thank you :).
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m12345

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Re: VCE Accounting Question Thread!
« Reply #1615 on: February 23, 2017, 08:54:08 pm »
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What is the difference between simple and reducing balance interest? Can someone please explain the difference in details because I do not understand and I have to know this for my SAC. This is in Chapter 4 of the cambridge textbook.

dan0038

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Re: VCE Accounting Question Thread!
« Reply #1616 on: March 02, 2017, 02:07:35 pm »
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HEY GUYS, this question is for the accounting gods. my first sac just past and i have a query bout a point that i got wrong. does discount apply to the whole gst total when receiving money back from a debtor or does it apply to the gst exclusive total. coz the rule is that gst is not included when paying creditors or receiving money from debtors. So apparently im wrong that discount applies to the total not including gst. What do you guys think?
2016: Biology [29]|Maths Methods [35]
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ish708

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Re: VCE Accounting Question Thread!
« Reply #1617 on: March 08, 2017, 08:09:37 am »
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HEY GUYS, this question is for the accounting gods. my first sac just past and i have a query bout a point that i got wrong. does discount apply to the whole gst total when receiving money back from a debtor or does it apply to the gst exclusive total. coz the rule is that gst is not included when paying creditors or receiving money from debtors. So apparently im wrong that discount applies to the total not including gst. What do you guys think?

The discount does not apply to the GST, however you do not acknowledge this when recording. You have acknowledged GST when the credit sale occurred and as you know you cannot acknowledge it again or you would be double counting. So yes, the discount only comes of the GST exclusive total. That is because the business is not in a position to offer a discount on the GST - exceptions will come later in the course. So when recording you must not separate the GST when applying the discount but just be aware that the GST is not affected. If the discount is say 10%, they get 10% of the total they owe, including GST, however the GST is not decreased. Say the debtor owes $110 and they get 10% off, it comes to $99 owing including $11 GST. So the discount would essentially mean the debtor is paying $11 GST and $88 for the item they bought.
« Last Edit: March 08, 2017, 02:17:39 pm by ish708 »

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Re: VCE Accounting Question Thread!
« Reply #1618 on: March 10, 2017, 12:10:08 pm »
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How do you improve theory in accounting 1/2

ish708

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Re: VCE Accounting Question Thread!
« Reply #1619 on: March 10, 2017, 02:55:11 pm »
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How do you improve theory in accounting 1/2

Practise, practise, practise. Do a lot of theory questions and they will improve. Practise makes perfect. Try to nail your definitions as you get taught them, as intertwining a definition into your answer boosts it. Feel free to message me if you want and I can help you out with anything. I can even give you some questions if you like and mark them for you?