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AusGrader has 57 VCAA Accounting questions on Recording and analysing financial data, all with instant AI grading and detailed marking feedback.

VCAA (VCE) Accounting — Recording and analysing financial data Questions & Answers | AusGrader

Q9

2024

QCAA

1 mark

Q9

1 mark

After completing their final reports for the 2024 financial year, a business has calculated the data shown.

Data	2023	2024
Current ratio	3.5:1	3:1
Turnover of accounts receivable	90 days	70 days
Turnover of inventories	5 times	3.5 times
Cash at bank	(＄567 556)	(＄478 321)

The ratios show that in 2024, accounts receivable are

A

paying their accounts more slowly and inventory is moving quickly.

B

paying their accounts more quickly and inventory is moving slowly.

C

paying their accounts more slowly and inventory turnover has improved.

D

paying their accounts more quickly and inventory turnover has improved.

Q2

2023

QCAA

1 mark

Q2

1 mark

A business is making good profits, but the owners have raised concerns regarding the trend in the turnover of inventory ratio.

	2021	2022	2023	Industry benchmark
Turnover of inventory ratio	4.5 times	4.3 times	4.0 times	5.15 times

The data shows that the

A

inventory is slow moving and could affect the business’s liquidity.

B

business has strong sales and is making profits, so the trend is not a concern.

C

turnover of inventory ratio is likely to fluctuate from year to year, so is not a concern.

D

trend is not a concern because the turnover ratios are close to the industry benchmark.

Q12

2022

QCAA

17 marks

Q12a

8 marks

Read Case study 1 (Stimulus 6–8) in the stimulus book.

Prepare a fully classified Statement of Profit or Loss for the years ended 30 June 2021 and 2022.

	2022			2021
Particulars	$	$	$	$	$	$

Statement of Profit or Loss for year ended 30 June

	2022			2021
	$	$	$	$	$	$
Sales			74 880			62 400
Less Cost of Sales			22 464			18 720
Gross Profit			52 416			43 680

Less Other Expenses
Selling Expenses
Fuel - Delivery Vehicle	1 500			1 250
Hire - Delivery Vehicle	6 000	7 500		6 000	7 250

Administrative Expenses
Depreciation - Equipment	1 245			1 205
Depreciation - Office	24			24
Electricity expense	1 600			1 600
Insurance expense	1 750			1 600
Lease expense - shed	3 600			3 600
Telephone expense	1 200	9 419		1 200	9 229

Finance Expenses
Interest expense		200	17 119		500	16 979
Net Profit			35 297			26 701

Marking Criteria

Recording Revenue and Expenses

Marking Bands

Descriptor	Marks
Correctly records as revenue and expenses for at least 10 accounts	5
Correctly records as revenue and expenses for 9 accounts	4
Correctly records as revenue and expenses for 8 accounts	3
Correctly records as revenue and expenses for 5 accounts	2
Correctly records as revenue and expenses for 3 accounts	1
None of the above	0

Execution

Descriptor	Marks
Correctly determines gross and net profit figures	1
Uses correct classifications	1
Correctly classifies accounts	1

Q12b

9 marks

Stimulus 6 identifies a goal-oriented problem for the business.

Using Stimulus 6–8 and your response to Q12a), justify your advice to Kurt.

Profitability ratios will be used in providing advice:
The gross profit (GP) ratio (70% for each year) and the net profit (NP) ratio for the two years are 43% (2021) and 47% (2022).

Assumptions:

constant expenses of the business
constant sales and cost of sales so the GP ratio will not be affected
ongoing costs, e.g. maintenance, insurance, registration, depreciation of both options are similar.

Loan repayments total ＄38 940 over the five years (＄7 788 per year) including interest of ＄8 940 over the 5 years (＄1 788 per year).
Over the five years, lease payments (＄18 000) for the shed and vehicle hire costs (＄30 000) would be incurred.
The vehicle is a depreciable non-current asset, but its lifespan could mean the need to acquire another vehicle in the near future.
The annual cash outflow is ＄9 600 for both shed lease and vehicle rental. Purchasing the shed would increase the cash outflow to ＄13 788 and purchasing the vehicle would increase the cash outflow to ＄11 388 annually. The vehicle purchase assists short-term cash flow.
Expenses would decrease by ＄1 812 per year if the shed is purchased and by ＄4 212 if the van is purchased. Both options produce a positive effect on NP ratio bringing it to 49% with shed purchase or 52% with van purchase.
Purchasing the shed provides an appreciating asset with the potential for access to future funding for the purchase of a delivery vehicle. Kurt will maintain his goal with this option.

Marking Criteria

Descriptor	Marks
Provides one or more plausible assumptions that underlie the options	1
Identifies the relevant profitability ratio: gross profit ratio	1
Identifies the relevant profitability ratio: net profit ratio	1
Calculates the GP and NP ratios for 2021 and 2022 accurately	1
Uses financial data to support the viability of one option	1
Uses financial data to support the viability of a second option	1
Explains a plausible effect on profitability for one option	1
Explains a plausible effect on profitability for a second option	1
Provides plausible advice	1

Q11

2023

QCAA

10 marks

Q11

Read Case study 1 (Stimulus 1) in the stimulus book.

Q11a

8 marks

Record the balance day adjustments in the worksheet for the two issues identified. Add the further accounts required and complete the Adjusted Balance column for the affected accounts.
Worksheet (extract) for Whitegoods Retailer as at 30 June 2023

Unadjusted Balance of Accounts		Adjustments		Adjusted Balance
		DR	CR	DR	CR
	$	$	$	$	$
Inventories	4 590
Accounts receivable	13 500
Bad and doubtful debts (expense)	9 700
Interest revenue	156
GST collected	2 300
Depreciation on retail fittings	4 000
Cost of goods sold	5 000
Sales	79 880
Sales returns and allowances	3 400
Dividends received	450
Sales commission paid	3 999
Office staff salaries	15 976
Insurance	6 000
Cartage on sales	700
Accounts payable	8 700
Bank charges	320
Rates	1 700
Sales staff wages	23 964
Repairs and maintenance of delivery vehicle	7 000
Cash at bank	15 000
Depreciation on delivery vehicle	8 000

Worksheet (extract) for Whitegoods Retailer as at 30 June 2023

Unadjusted Balance of Accounts		Adjustments		Adjusted Balance
		DR	CR	DR	CR
	$	$	$	$	$
Inventories	4 590		994	3 596
Accounts receivable	13 500	3 516	3 516	13 500
Bad and doubtful debts (expense)	9 700
Interest revenue	156
GST collected	2300		320		2 620
Depreciation on retail fittings	4 000
Cost of goods sold	5 000
Sales	79880
Sales returns and allowances	3 400
Dividends received	450
Sales commission paid	3 999
Office staff salaries	15 976
Insurance	6 000
Cartage on sales	700
Accounts payable	8700
Bank charges	320
Rates	1 700
Sales staff wages	23 964
Repairs and maintenance of delivery vehicle	7 000
Cash at bank	15 000	3 516		18 516
Depreciation on delivery vehicle	8 000
Inventory adjustment		994		994
Bad debts recovered			3 196		3 196

Marking Criteria

Adjustments

Marking Bands

Descriptor	Marks
Correctly records 7 adjustments	7
Correctly records 6 adjustments	6
Correctly records 5 adjustments	5
Correctly records 4 adjustments	4
Correctly records 3 adjustments	3
Correctly records 2 adjustments	2
Correctly records 1 adjustment	1
None of the above	0

Totals

Descriptor	Marks
Correctly totals adjusted accounts	1

Q11b

2 marks

Explain one limitation and one benefit of recording inventories at net realisable value.

A limitation of using net realisable value is that the costs associated with the sale of the inventory items are estimates only, as is the sale price.

A benefit of using net realisable value is that because its sale price and associated costs are less than the historical cost, the inventory item is more accurately reported in the accounts.

Marking Criteria

Descriptor	Marks
Explains a plausible limitation	1
Explains a plausible benefit	1

Q11

2022

QCAA

13 marks

Q11

Read Case study 1 (Stimulus 1–5) in the stimulus book.

Q11a

2 marks

Prepare the General Journal entries to reflect all transactions for June 2020 (narrations not required).
General Journal

Date	Particulars	Ref	DR $	CR $

General Journal

Date	Particulars	DR $	CR $
Jun-23	Cash at Bank	5 000
	Tools	2 500
	Laptop	500
	Office furniture	235
	Machinery	3 000
	Mobile phone	975
	Inventories	950
	Capital		13 160

Jun-30	Cash at Bank	10 000
	Loan from Bank		10 000

Marking Criteria

Descriptor	Marks
Correctly records opening entry	1
Correctly records entry for receipt of loan	1

Q11b

11 marks

Prepare a fully classified Statement of Financial Position (T format) for the business as at 30 June 2020.

Statement of Financial Position as at 30 June 2020

	$		$

Statement of Financial Position as at 30 June 2020

Assets		Liabilities
Current Assets		Non-Current Liabilities
Cash at Bank	15 000	Loan from Bank	10 000
Inventories	950
	15 950
Non-Current Assets		Owner's Equity
Property, Plant and Equipment		Capital	13 160
Machinery	3 000
Tools	2 500
Laptop	500
Office furniture	235
Mobile phone	975
	7 210
	$23 160		$23 160

Marking Criteria

Classification Headings

Marking Bands

Descriptor	Marks
Correctly presents 7 classification headings	4
Correctly presents 5-6 classification headings	3
Correctly presents 3-4 classification headings	2
Correctly presents 1-2 classification headings	1
None of the above	0

Account Classification

Marking Bands

Descriptor	Marks
Correctly classifies all 9 accounts	5
Correctly classifies 8 accounts	4
Correctly classifies 5-7 accounts	3
Correctly classifies 3-4 accounts	2
Correctly classifies 1-2 accounts	1
None of the above	0

Calculations

Marking Bands

Descriptor	Marks
Correctly calculates 4 totals	2
Correctly calculates 2-3 totals	1
None of the above	0

VCAA Accounting Recording and analysing financial data

Recording Revenue and Expenses

Execution

Adjustments

Totals

Classification Headings

Account Classification

Calculations

Frequently Asked Questions

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