WILD
November 19th 2024
When do the VCE Year 11 Examinations Commence
A current economic resource controlled by the entity as a result of a past transaction that is not held for the purpose of resale
What is a Non Current Asset
Measure of how productively the business uses their average total assets to earn revenue
What is the Asset Turnover?
An increase in selling price can lead to a decrease in Gross Profit
How does an increased gross profit margin impact gross profit?
Makes information in the accounting reports helpful for decision making
What is Relevance
1.2 minutes
How long should you spend on answering a question worth 1 mark in the exam?
Increase Assets or decrease liabilities that increases Owner's Equity
What is a revenue?
measures how productively the business uses their average total assets to generate a Net Profit
What is the Return on Assets?
Net Profit is revenue earned less expenses incurred whereas profitability is the ability of the business to earn a profit when compared against a based such as sales, total assets or owners equity
What is the difference between net profit and profitability?
Reports are prepared for a period of time such as a month or a year in order to obtain comparability
What is the Period Assumption?
75%
What do you need to continue on into Unit 3 Accounting
The value of a Non Current Asset that is yet to be depreciated plus any residual value
What is the carrying value
Working Capital Ratio
Cash Flow Cover
Quick Asset Ratio
What are the liquidity indicators??
Worsening in expense control
What causes the Net Profit Margin to decrease?
Residual interest in the assets of the business after deducting all liabilities
What is Owner's Equity?
Cash inflows less cash outflows relating to changes in the firms financial structure
What are Net Cashflows from Financing Activities?
The original purchase price plus all once off costs associated with getting the item ready for use./
What is Historical Cost
The average number of days it takes for the business to sell all their inventory
What does the Inventory Turnover measure?
GST Collected from the sale of inventory.
What causes the GST Payable to increase?
Decrease liabilities and increase Owner's Equity
What is Discount Revenue?
Policies and procedures adopted buy a business to safeguard their assets against theft and fraud
What is internal control?
The process of allocation the cost of a Non Current Asset over its useful life
What is Depreciation?
Return on Assets divided by the Asset Turnover
How do you calculate the Net Profit Margin?
The value of a non current asset at the time of its contribution to the business by the owner
What is Fair Value?
Financial reports are prepared on the assumption that the business will continue to operate into the future
What is the Going Concern?