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September 19, 2020, 08:04:57 pm

Author Topic: QCE Accounting Questions Thread  (Read 784 times)

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Joseph41

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QCE Accounting Questions Thread
« on: February 20, 2019, 02:37:36 pm »
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QCE ACCOUNTING Q&A THREAD

What is this thread for?
If you have general questions about the QCE Accounting course (both Units 1&2 and 3&4) or how to improve in certain areas, this is the place to ask! 👌


Who can/will answer questions?
Everyone is welcome to contribute; even if you're unsure of yourself, providing different perspectives is incredibly valuable.

Please don't be dissuaded by the fact that you haven't finished Year 12, or didn't score as highly as others, or your advice contradicts something else you've seen on this thread, or whatever; none of this disqualifies you from helping others. And if you're worried you do have some sort of misconception, put it out there and someone else can clarify and modify your understanding! 

There'll be a whole bunch of other high-scoring students with their own wealths of wisdom to share with you, so you may even get multiple answers from different people offering their insights - very cool.


To ask a question or make a post, you will first need an ATAR Notes account. You probably already have one, but if you don't, it takes about four seconds to sign up - and completely free!

michelle88

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Re: QCE Accounting Questions Thread
« Reply #1 on: April 08, 2020, 02:22:44 pm »
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Hi, I just wanted some help with this question:

"Explain how the reporting of provision for doubtful debts in the Statement of Financial Position ensures relevance and faithful representation."

Thanks.

willem.grobler

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Re: QCE Accounting Questions Thread
« Reply #2 on: July 28, 2020, 10:12:20 am »
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Faithful representation requires that The Statement of Financial Position of a business is an accurate as possible reflection (given the limitations of financial statements) of the financial state of the Assets, Liabilities and Owner's Equity (A = L + OE) of a business at a particular moment in time.
Because businesses who sell on credit experience bad debt, it is reasonable to expect that the value of Accounts Receivable as an asset includes amounts that will near certainly become bad in the future and that the value of Accounts Receivable is therefore overstated.
Incorporating Provision for Doubtful Debts as a contra asset to Accounts Receivable therefore reduces the asset value of Accounts Receivable and the Statement of Financial position becomes a more faithful representation of the actual value of the business assets.
Calculating, adjusting and reporting the Provision for Doubtful Debts in the current financial period, ensures that readers of financial statements have current and material information on which to base decisions, e.g. credit policy enforcement and management effectiveness decisions that may impact achievement of business goals.

SriSrii

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Re: QCE Accounting Questions Thread
« Reply #3 on: September 10, 2020, 09:38:02 am »
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Hey, what is the easiest way to like do general journals/ledgers and trail balance, i struggle with these the most, so any tips would be amazing, thankyou in advance.