VCE Vault

VCE Accounting past exams 2023–2025

Every question from the last three VCE Accounting exams, matched to the lesson that teaches it, with class averages from the examiners' reports and worked solutions. VCE Accounting (Year 12) lessons.

2025 Exam

  • Q1a (4 marks, class average 68%): General Journal entry for a credit note issued for a returned toaster. Lesson: Source Documents and GST, Sales Journal and Accounts Receivable
  • Q1b (2 marks, class average 75%): How credit notes can be a non-financial indicator of performance. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q1c (4 marks, class average 57%): Ledger accounts for prepaid advertising after the first quarter's adjustment. Lesson: Balance-Day Adjustments — Accruals and Prepayments
  • Q1d (3 marks, class average 60%): Why documents matter, linked to one qualitative characteristic. Lesson: Accounting Concepts and Qualitative Characteristics, Source Documents and GST
  • Q2a (2 marks, class average 80%): Two reasons other than theft for an inventory loss. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q2b (2 marks, class average 80%): One more internal control to reduce inventory theft. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q2c (4 marks, class average 53%): Analyse the effects of an inventory turnover much slower than the industry. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability, Inventory Valuation — FIFO and Identified Cost
  • Q2d (3 marks, class average 53%): Justify switching from Identified Cost to FIFO for a pet food business. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q3a (2 marks, class average 65%): General Journal entry for a credit purchase of jumpers with a delivery charge. Lesson: Purchases Journal and Accounts Payable, Inventory Valuation — FIFO and Identified Cost
  • Q3b (3 marks, class average 47%): Write the jumpers down to net realisable value. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q3c (3 marks, class average 73%): Consequences if the business keeps paying suppliers more and more slowly. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q4a (3 marks, class average 50%): GST to be paid in November. Lesson: Budgeted Financial Reports, Source Documents and GST
  • Q4b (7 marks, class average 49%): Ledger accounts to find the cash expected from accounts receivable. Lesson: Budgeted Financial Reports, Subsidiary Ledgers and Control Accounts
  • Q4c (6 marks, class average 55%): Operating Activities section of the Budgeted Cash Flow Statement for November. Lesson: Budgeted Financial Reports, Cash Flow Statement — Operating, Investing, Financing
  • Q4d (3 marks, class average 40%): Why operating cash flow can be higher than net profit. Lesson: Cash Flow Statement — Operating, Investing, Financing, Income Statement Preparation
  • Q4e (2 marks, class average 75%): One advantage of budgeting monthly instead of quarterly. Lesson: Budgeted Financial Reports
  • Q5a (4 marks, class average 73%): Yearly profit for the overnight shift, at current wages and with a 20% rise. Lesson: Variance Analysis — Budget vs Actual, Ethical Considerations in Accounting
  • Q5b (6 marks, class average 57%): Discuss whether to keep the overnight shift, financially and ethically, and recommend. Lesson: Ethical Considerations in Accounting, Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q6a (2 marks, class average 50%): Why a falling Return on Assets is a concern. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q6b (3 marks, class average 40%): How sales and Asset Turnover can rise while Return on Assets falls. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q6c (3 marks, class average 57%): How sales meets the definition of an accounting element. Lesson: Accounting Concepts and Qualitative Characteristics
  • Q7a (12 marks, class average 53%): General Journal adjustments at month end from a trial balance. Lesson: Balance-Day Adjustments — Accruals and Prepayments, Depreciation — Straight-Line and Reducing Balance, Inventory Valuation — FIFO and Identified Cost
  • Q7b (4 marks, class average 50%): Current Liabilities section of the Balance Sheet. Lesson: Balance Sheet Preparation
  • Q7c (3 marks, class average 47%): Explain the treatment of a customer's deposit for goods not yet supplied. Lesson: Balance-Day Adjustments — Accruals and Prepayments, Accounting Concepts and Qualitative Characteristics
  • Q8a (1 mark, class average 26%): Depreciation on the traded-in van for six months. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q8b (4 marks, class average 45%): Disposal of Delivery Van account for a trade-in. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q8c (3 marks, class average 33%): Total van depreciation for the year. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q8d (2 marks, class average 30%): Effect of the van trade-in and purchase on the Cash Flow Statement. Lesson: Cash Flow Statement — Operating, Investing, Financing

2024 Exam

  • Q1a (1 mark, class average 65%): Identify the transaction behind an inventory card entry. Lesson: Source Documents and GST, Inventory Valuation — FIFO and Identified Cost
  • Q1b (3 marks, class average 63%): General Journal entry for a credit note recorded on an inventory card. Lesson: Sales Journal and Accounts Receivable, Inventory Valuation — FIFO and Identified Cost
  • Q1c (3 marks, class average 50%): Why use Identified Cost for expensive costumes but FIFO for cheap accessories. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q2a (6 marks, class average 58%): Discuss the financial and ethical impact of switching to a cheaper, lower-quality supplier. Lesson: Ethical Considerations in Accounting, Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q2b (4 marks, class average 73%): General Journal entries for a credit inventory purchase and a cash delivery charge. Lesson: Purchases Journal and Accounts Payable, Source Documents and GST
  • Q2c (3 marks, class average 60%): Why delivery was a period cost, not a product cost. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q2d (3 marks, class average 47%): Effect on Net Profit of treating delivery as a period cost. Lesson: Inventory Valuation — FIFO and Identified Cost, Income Statement Preparation
  • Q3a (3 marks, class average 53%): Capital ledger account to find the owner's cash contribution. Lesson: General Journal — Capital, Drawings and Corrections
  • Q3b (5 marks, class average 62%): Financing Activities section of the Cash Flow Statement for a quarter. Lesson: Cash Flow Statement — Operating, Investing, Financing
  • Q3c (4 marks, class average 40%): Two reasons operating cash flow was higher than net profit. Lesson: Cash Flow Statement — Operating, Investing, Financing
  • Q4a (7 marks, class average 66%): Budgeted Income Statement for the next year from last year's figures. Lesson: Budgeted Financial Reports, Income Statement Preparation
  • Q4b (3 marks, class average 53%): How the business should use its budgeted income statement during the year. Lesson: Budgeted Financial Reports, Variance Analysis — Budget vs Actual
  • Q5a (2 marks, class average 50%): Why Cash Flow Cover is an important liquidity indicator. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability, Cash Flow Statement — Operating, Investing, Financing
  • Q5b (4 marks, class average 63%): Two problems for a business with poor liquidity. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q5c (3 marks, class average 73%): Recommend and justify the best option to improve liquidity and keep performing. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability, Subsidiary Ledgers and Control Accounts
  • Q5d (3 marks, class average 73%): Which option is least likely to help, and why. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q6a (9 marks, class average 47%): Complete the wages, unearned revenue and doubtful debts ledger accounts. Lesson: Balance-Day Adjustments — Accruals and Prepayments, Subsidiary Ledgers and Control Accounts
  • Q6b (6 marks, class average 47%): General Journal balance-day adjustments for October. Lesson: Balance-Day Adjustments — Accruals and Prepayments
  • Q6c (3 marks, class average 50%): Why the doubtful debts adjustment is needed, using one qualitative characteristic. Lesson: Accounting Concepts and Qualitative Characteristics, Balance-Day Adjustments — Accruals and Prepayments
  • Q7a (3 marks, class average 50%): Why the two depreciation methods differ each year but not over the asset's life. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q7b (2 marks, class average 55%): What the \$20 000 at year 10 represents. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q7c (1 mark, class average 86%): Straight-line depreciation per year. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q7d (3 marks, class average 67%): Balance Sheet extract for the equipment after four years of reducing-balance depreciation. Lesson: Depreciation — Straight-Line and Reducing Balance, Balance Sheet Preparation
  • Q8a (11 marks, class average 55%): General Journal entries for selling a van for cash, buying a new van, and insurance. Lesson: Depreciation — Straight-Line and Reducing Balance
  • Q8b (5 marks, class average 62%): Classify each cash item in the Cash Flow Statement. Lesson: Cash Flow Statement — Operating, Investing, Financing

2023 Exam

  • Q1a (5 marks, class average 56%): General Journal entries for two credit notes shown on an inventory card. Lesson: Sales Journal and Accounts Receivable, Purchases Journal and Accounts Payable, Inventory Valuation — FIFO and Identified Cost
  • Q1b (2 marks, class average 80%): One strategy to make inventory turnover faster. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability, Inventory Valuation — FIFO and Identified Cost
  • Q2a (3 marks, class average 47%): General Journal entry to set up a double-entry system from a list of balances. Lesson: General Journal — Capital, Drawings and Corrections, Accounting Equation and Double-Entry
  • Q2b (2 marks, class average 30%): One reason to use a double-entry system. Lesson: Accounting Equation and Double-Entry
  • Q2c (4 marks, class average 68%): Current Assets section of the Balance Sheet. Lesson: Balance Sheet Preparation
  • Q2d (2 marks): Why a vehicle contributed by the owner is recorded at fair value. Lesson: Accounting Concepts and Qualitative Characteristics, General Journal — Capital, Drawings and Corrections
  • Q3a (5 marks, class average 58%): Use the charts to explain why net profit fell despite rising sales. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q3b (4 marks, class average 73%): Two strategies to improve profitability. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability
  • Q4a (5 marks, class average 74%): Cost price of one coffee machine, and why. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q4b (2 marks, class average 55%): General Journal entry for paying the air freight. Lesson: Inventory Valuation — FIFO and Identified Cost, Source Documents and GST
  • Q4c (1 mark, class average 68%): Selling price with a 200% mark-up. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q4d (4 marks, class average 68%): Write the remaining coffee machines down to net realisable value. Lesson: Inventory Valuation — FIFO and Identified Cost
  • Q5a (7 marks, class average 54%): Inventory and GST Clearing ledgers to find cash flows. Lesson: Cash Flow Statement — Operating, Investing, Financing, Source Documents and GST
  • Q5b (7 marks, class average 54%): Operating Activities section of the Cash Flow Statement for six months. Lesson: Cash Flow Statement — Operating, Investing, Financing
  • Q5c (4 marks, class average 45%): Why operating cash flow can matter more than the Income Statement. Lesson: Cash Flow Statement — Operating, Investing, Financing, Income Statement Preparation
  • Q6a (13 marks, class average 59%): Complete five ledger accounts for September balance-day adjustments. Lesson: Balance-Day Adjustments — Accruals and Prepayments, Depreciation — Straight-Line and Reducing Balance, Subsidiary Ledgers and Control Accounts
  • Q6b (4 marks, class average 68%): Explain the treatment of one balance-day adjustment using an accounting assumption. Lesson: Accounting Concepts and Qualitative Characteristics, Balance-Day Adjustments — Accruals and Prepayments
  • Q7a (6 marks, class average 68%): How the expansion affects each section of the Cash Flow Statement in April and May. Lesson: Cash Flow Statement — Operating, Investing, Financing
  • Q7b (1 mark, class average 51%): Budgeted bank balance at 31 May. Lesson: Cash Flow Statement — Operating, Investing, Financing
  • Q7c (6 marks, class average 50%): Discuss whether the owner should worry about liquidity. Lesson: Financial Indicators — Profitability, Liquidity, Efficiency, Stability, Cash Flow Statement — Operating, Investing, Financing
  • Q8a (5 marks, class average 70%): Total cost of holding each vehicle over five years. Lesson: Budgeted Financial Reports, Depreciation — Straight-Line and Reducing Balance
  • Q8b (6 marks, class average 62%): Discuss the financial and ethical issues of the vehicle choice and recommend one. Lesson: Ethical Considerations in Accounting
  • Q8c (2 marks, class average 45%): What the \$11 000 for the vehicle on the Balance Sheet represents. Lesson: Depreciation — Straight-Line and Reducing Balance