§-Accounting syllabus

Accounting syllabus, dot point by dot point

Every dot point in the QLD Accounting syllabus, in syllabus order, with a focused answer for each. Open any dot point for the answer, exam-style questions and links to related points.

Unit 3: Managing resources for a trading GST business

Unit overview →

How does a trading GST business record and value its inventory so that cost of goods sold and the asset reported are accurate?

Apply the perpetual inventory system and the first-in first-out (FIFO) cost assignment method, maintain inventory cards, and report inventory at the lower of cost and net realisable value

6 min read →

How does a trading GST business adjust its records at balance day so that profit and position reflect the period they actually relate to?

Apply the accrual basis to record balance day adjustments for prepaid and accrued expenses, accrued and unearned revenue, and depreciation, so that the income statement and balance sheet are accurate

6 min read →

How does a trading GST business control and verify its cash resources so that recorded balances are reliable?

Apply double-entry and GST principles to record cash receipts and payments, and prepare a bank reconciliation statement to verify the cash at bank balance against the bank statement

6 min read →

How does a trading GST business record and control what it owes to suppliers so that payments are accurate, timely and verifiable?

Apply double-entry and GST principles to record credit purchases, purchase returns and payments to suppliers, and reconcile the accounts payable control account with the schedule of accounts payable

6 min read →

How does a trading GST business allocate the cost of a non-current asset over its useful life and account for its disposal?

Apply double-entry and GST principles to record the acquisition, depreciation (straight-line and reducing-balance) and disposal of non-current assets, and report carrying amount in the balance sheet

6 min read →

How should a trading GST business account for credit customers who may not pay, so that receivables and profit are not overstated?

Apply double-entry and GST principles to record credit sales, bad debts written off, and the allowance for doubtful debts, and report accounts receivable at net realisable value

6 min read →

How does a trading GST business forecast its cash inflows and outflows so it can plan for surpluses and shortfalls before they happen?

Prepare a cash budget for a trading GST business that forecasts cash receipts and payments, calculates the budgeted closing bank balance, and informs decisions about managing liquidity

7 min read →

How does a trading GST business report its performance and position in fully classified financial statements?

Prepare a fully classified income statement and balance sheet for a sole-trader trading GST business, applying accrual adjustments and correct classification of items

6 min read →

Unit 4: Accounting - the big picture

Unit overview →

How can the financial statements of a business be analysed over time and in relative terms to reveal the story behind the dollar figures?

Apply horizontal, vertical and trend analysis to financial statements to identify changes and relationships, and interpret the results to support decision-making

6 min read →

What do cash flow ratios reveal about a business's liquidity and the quality of its performance?

Calculate and interpret cash flow ratios, including the operating cash flow ratio and the cash generating power ratio, to assess liquidity and performance

7 min read →

How financially stable is a business, and how is ratio analysis used to make and justify decisions?

Calculate and interpret financial stability ratios (debt to equity, debt ratio, times interest earned) and synthesise ratio analysis to make and justify decisions about a business

6 min read →

Can a business meet its short-term debts, and how efficiently does it manage working capital?

Calculate and interpret liquidity ratios (current ratio, quick ratio) and efficiency ratios (inventory turnover, accounts receivable turnover) to assess short-term financial health

6 min read →

How profitable is a business, and what do profitability ratios reveal about its performance?

Calculate and interpret profitability ratios (gross profit margin, net profit margin, return on owner's equity, return on assets) to evaluate business performance and inform decisions

6 min read →

What can a Statement of Cash Flows tell an owner about the business, and what should they do about it?

Interpret a Statement of Cash Flows and cash flow ratios across periods to evaluate cash management and make justified recommendations

7 min read →

How does a company raise and report equity, and how does company reporting differ from a sole trader?

Apply double-entry principles to record the issue of shares and the appropriation of company profit, and prepare the equity section of a company balance sheet

6 min read →

Where did a sole trader's cash come from and where did it go during the year?

Prepare a fully classified Statement of Cash Flows for a sole trader trading GST business, showing operating, investing and financing activities, and reconcile it to the Statement of Financial Position

8 min read →