Q: Does the VCE Accounting exam include multiple choice?
A: No. The VCAA Accounting external exam is 100% short answer — 8 questions, 100 marks, 2 hours. The MCQ in this pack is a knowledge-check tool, not an exam simulation.
Q: Does depreciation appear in a Cash Flow Statement?
A: No. Depreciation is non-cash. It only appears in the Income Statement (expense) and Balance Sheet (Accumulated Depreciation). Never include it in Operating Activities.
Q: How do I find cash received from debtors?
A: Open an Accounts Receivable T-account. Post opening balance and credit sales to the Dr side. Post returns, bad debts, and closing balance to the Cr side. The missing Cr figure that balances the account is the cash received.
Q: What is the difference between discount expense and bad debts?
A: Discount expense is a voluntary early-payment reduction offered to customers (e.g., 2/10). Bad debts are amounts the business cannot collect — the customer has failed to pay. Both reduce Accounts Receivable but through different accounts and for different reasons.
Q: How do I apply the 2/10, n/30 terms?
A: 2% discount if paid within 10 days; full amount due within 30 days. Discount applies to the GST-exclusive amount only. GST on the discount reduces the GST Clearing balance.
Q: How many marks are explanation questions worth?
A: Typically 2-3 marks. A 2-mark question: state the concept + apply to the scenario. A 3-mark question adds: state the accounting impact if the concept were ignored. Never write a one-sentence answer to a 3-mark question.
