§-Accounting Q&A
SA · SACE Board← Accounting
Accounting Q&A by dot point
A short Q&A bank for every SA Accounting syllabus dot point. Each question and answer is drawn directly from our worked dot-point page, so you can scan key concepts before opening the long-form answer.
Topic 1: Preparing and Presenting Accounting Information
Prepare balance day adjustments for accruals, prepayments, depreciation and doubtful debts to produce accurate final reports
Prepare and present the income statement, balance sheet and cash flow statement for a business
Record the goods and services tax on sales and purchases using source documents and report the net GST liability
Record inventory under perpetual and periodic systems and value closing inventory using the FIFO cost flow
Record business transactions through journals and post them to ledger accounts to prepare a trial balance
Apply the accounting equation and the rules of double-entry to analyse the dual effect of business transactions
Topic 2: Analysing and Interpreting Financial Information
Calculate and interpret efficiency and financial stability ratios to evaluate asset management and gearing
Apply horizontal, vertical and trend analysis to compare financial statements over time and within a period
Interpret financial information using trend analysis, benchmarking and the limitations of the data to evaluate performance
Calculate and apply profitability and liquidity ratios to evaluate the performance and position of a business
Topic 3: Decision Making for a Business
Prepare and use budgets, especially the cash budget, to plan, control and make decisions for a business
Apply cost-volume-profit analysis to calculate the break-even point and inform pricing and output decisions
Explain and reconcile the difference between profit and cash flow to manage the financial sustainability of a business
Identify relevant costs and apply them to short-term decisions such as special orders and make-or-buy
Topic 4: Applying Accounting Concepts
Explain the key accounting principles and ethical responsibilities that underpin reliable financial reporting
Apply accounting concepts, principles and analysis to new and unfamiliar business situations to recommend decisions
Distinguish business structures and explain how the regulatory framework influences accounting activities