UNIT 4 PRACTICE REVISION EXAM QUESTIONS 6ANSWER BOOKLET 6UNIT 4 PRACTICE REVISION EXAM QUESTIONS 7ANSWER BOOKLET 7For unit 4, Need to know they following:AOS 1: source and business documents, credit notes for sales returns by debtors and purchase returns to creditors
returns of stock recorded in the general journal: sales returns from trade debtors and purchase returns to trade creditors
the recording and reporting of balance day adjustments: prepaid revenue with no GST and accrued revenue with GST
receipt of accrued revenue
stock valuation: product and period costs and lower of cost and net realisable value including stock write down
the purchase of non-current depreciable assets from a sundry creditor
the reducing balance method of depreciation and alternative methods of depreciation on accounting reports
disposal of non-current depreciable assets for cash or as a trade-in
profit or loss on disposal of a non-current depreciable asset
recording of transactions into special and general journals, general and subsidiary ledgers and stock cards
the effect of transactions on the accounting equation and accounting reports.
AOS 2: classified budgeted accounting reports, including reconstruction of accounts: Cash Flow Statement, Income Statement and Balance Sheet
variance reports for Cash Flow Statements and Income Statements
measures for evaluating profitability, liquidity, efficiency and stability: financial indicators, variances, trends and benchmarks
the use of non-financial information
strategies to improve profitability and liquidity
strategies for the management of stock, debtors and creditors.