VCE Accounting Question Thread!

[Secc119]

Yeah. in my opinion checkpoints is really good for accounting as it provides a lot of VCAA's theory that teachers often recycle for SAC's. Practical is also relevant but its a bit of a pain to actually rule up ledgers yourself so maybe look on the VCAA site for the relevant practical questions and print off the proformas etc

[zuleika]

Hey guys, what qualitative characteristic would relate closest to conservatism. I'm not sure if it would be relevance or reliability.

[Big Dadda]

Hey guys, what qualitative characteristic would relate closest to conservatism. I'm not sure if it would be relevance or reliability.

Relevance. It depends on the context of the question though.

[Big Dadda]

Hey guys, could someone help me out with Exercise 1.7 from Box's book For each of the following situations, refer to the qualitative characteristics of accounting and/or the accounting principle(s) that are relevant and how they should be applied to the given circumstances.

E) Roger Van is the proprietor of Van’s Steam Cleaning. The business has been struggling of late and Roger is not certain that he will continue in business next year. With this in mind he has prepared a balance sheet on the basis of what he expects to receive if he decides to sell the firm’s assets.

I would say the going concern, historical cost and reliability but I think that there is more to it and this is not quite the right answer. I would like to know what you guys think.

Thanks.

[Secc119]

I think you are quite correct in identifying Historical Cost and Reliability as two main talking points given that these values are estimates and not based on the original purchase price as well as the fact that it is an inherently unreliable figure that cannot be verified by source documents. As a result this is likely to negatively skew decision-making. I think this also has scope for introducing Relevance (although I wouldn't say its necessary) as he is including 'unrelated' information that will hinder decision-making. Another point to talk about would be the market value of the asset. The Balance Sheet does not reflect the market value of the asset but rather shows assets at their historical cost as this is accurate and verifiable. I would say Going Concern relates to this but don't make it a main point. Maybe just as a final note you should say that 'Roger Van should assume his business' life to consider indefinitely into the future and so accounting reports such as the Balance Sheet should show this.'
Hope this helps!

[snowisawesome]

2 Questions
1.Is Wages expense the same as wages in the general ledger?
2. What is a negative owner's equity?
Thanks

[tinkerbell101]

2 Questions
1.Is Wages expense the same as wages in the general ledger?
2. What is a negative owner's equity?
Thanks

1. Yes, that's right. They may or may not always write expense at the end of each expense (or revenue at the end of each revenue item) but will definitely write it for things like interest, commission and rent (these can be a revenue or an expense). If it was accrued wages, it would also be stated.

2. I'm not positive about this one, but I think negative owner's equity refers to things that are reported under Owner's equity but decrease it. For example, drawings would be a negaive owner's equity. Negative assets include accumulated depreciation.

Hope this helps! 

[snowisawesome]

Would a sac average of ~85% and about the same on the exam be enough to get a 40 raw study score in accounting?

[tinkerbell101]

Would a sac average of ~85% and about the same on the exam be enough to get a 40 raw study score in accounting?

It all really depends on the strength of your cohort and your ranking, rather than your SAC scores although, SAC scores are definitely important in terms of determining how good you are in comparison to your friends . Last year I got 2 unit 4 sac's in the 70's and still managed to get an a+ for GA2. I think if you get an 85 in the exam, it won't be enough to get a 40 but most likely a high 30.  Perhaps aim for at least a 90 for a 40+. Do not stress now, by the time you come around to exams, you will be much better at the subject and will have done enough practice exams to get an over 90. All the best for accounting! Absolutely loved the subject and hope you will too!

[skrt skrt]

Anyone have any good notes on identifying source documents, I'm kinda struggling with it and I believe its chapter 3 in the Neville Box book.
Thanks

[Scanzy the pussy]

For identifying source documents, just try to focus on the source document number (eg: Chq011, or Rec022). Memo is pretty straightfoward, whereas for credit transaction source documents, try focusing on the name of the company on the very top of the source document instead, as the source document number will not necessarily work in some circumstances in differentiating between credit purchase or sales.

If the top of the credit source document has the name of the company you are doing the bookkeeping, then that source document will be your credit sales.

Skrrt Skrrt, PS, a Cambridge Accounting textbook is a better textbook to invest in, in my opnion of course.

[snowisawesome]

It all really depends on the strength of your cohort and your ranking, rather than your SAC scores although, SAC scores are definitely important in terms of determining how good you are in comparison to your friends . Last year I got 2 unit 4 sac's in the 70's and still managed to get an a+ for GA2. I think if you get an 85 in the exam, it won't be enough to get a 40 but most likely a high 30.  Perhaps aim for at least a 90 for a 40+. Do not stress now, by the time you come around to exams, you will be much better at the subject and will have done enough practice exams to get an over 90. All the best for accounting! Absolutely loved the subject and hope you will too!

So do you reckon a sac average of 85% and 90% on the exam would get 40 raw?
Also, do you have any tips for improving in accounting, as i'm sort of struggling with debit and credit entries and recording in ledgers, and also theory
Thanks

[zuleika]

It all really depends on the strength of your cohort and your ranking, rather than your SAC scores although, SAC scores are definitely important in terms of determining how good you are in comparison to your friends . Last year I got 2 unit 4 sac's in the 70's and still managed to get an a+ for GA2. I think if you get an 85 in the exam, it won't be enough to get a 40 but most likely a high 30.  Perhaps aim for at least a 90 for a 40+. Do not stress now, by the time you come around to exams, you will be much better at the subject and will have done enough practice exams to get an over 90. All the best for accounting! Absolutely loved the subject and hope you will too!

My teacher is a VCAA accesor and has been for 10+ years (forgot how many exactly). He told my class that in that time he hass never marked an exam that got 100%. The highest was a 98%. So doubt you could only get a 40 with a 90%+ exam. I think a high 80 would get a 40+, given you have a high SAC result.

[snowisawesome]

My teacher is a VCAA accesor and has been for 10+ years (forgot how many exactly). He told my class that in that time he hass never marked an exam that got 100%. The highest was a 98%. So doubt you could only get a 40 with a 90%+ exam. I think a high 80 would get a 40+, given you have a high SAC result.

High sac results as in would 85% be enough for 40 raw?

[dan0038]

High sac results as in would 85% be enough for 40 raw?

Well for me, i averaged 93% in first semester and then 97% in second semester on fairly reasonable sacs but then choked the exam and got around 80-85% and got 38 raw. My mate averaged the same but he got around high 80% for the exam and got 40 raw. he was rank 4 and i was rank 3. just goes to show the exam matters most and that choking the exam can really hit hard. probs focus on not dropping alot of marks like i did in the first semester and ur gud for a 40. my dm's are open if u need any help with accounting coz i did around 40 prac exams and choked the final exam 0.0