2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
https://canvas.sydney.edu.au/courses/35010/quizzes/149463 1/22
Mock final exam
Due No due date Points 0 Questions 13 Time Limit None
Allowed Attempts Unlimited
Instructions
This mock final exam is for self-study purposes only. It DOES NOT count towards your
assessment or grade for this Unit of Study.
We encouraged you to attempt the mock final exam in your self study time.
It contains sample questions only. Additional and different types of questions may be
included in the final exam.
Once you have attempted the mock final exam questions, click on the submit quiz button at
the end of the page to access feedback.
Exam information
Your mock final exam is X hours and X minutes long (XXX minutes). This includes 10 minutes of
reading time, but you can start typing whenever you are ready. You are strongly encouraged to use
this time to carefully plan and structure your response before you start writing.
Buffer time (Quiz): You will be allowed a buffer time of X minutes in case you experience any
technical issues starting your exam. This means that you have X minutes from the start time to
actually begin the exam and still get the full time allowed to complete the exam. If you are unable to
start your exam within that buffer time, you should apply for special consideration. Buffer time does
NOT mean you have extra time to complete your exam.
Please keep track of your time. Your timer may not update if you have an Internet connection issue.
Please use the time on your computer so that you always know how much time you have left. Only
questions completed within the exam time will be marked.
Your exam will consist of 13 questions:
Question type Points Recommended
time
Question 1 Written answer
X X minutes
Question 2 Short written answer
X X minutes
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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Question type Points Recommended
time
Question 3 Short written answer
X X minutes
Question 4 Short written answer
X X minutes
Question 5 Short written answer
X X minutes
Question 6 Calculations
X X minutes
Question 7 Calculations
X X minutes
Question 8 Calculations
X X minutes
Question 9 Calculation and journal entries
X X minutes
Question 10 Calculation and journal entries
X X minutes
Question 11
Calculation and journal
entries
X X minutes
Question 12 Calculations
X X minutes
Question 13 Short written answer
x x minutes
The total points (marks) of this exam is X. The questions are not of equal value. The mark to be
awarded for each question, presented as "pts", is indicated at the beginning of each question. Each
part of all questions must be attempted.
Marks will be awarded for workings. All workings are to be included in your exam paper. Check
your exam contains 13 Questions.
Exam conditions: This is a closed book exam.
You are allowed the following materials in your exam: Hand-held calculator. No electronic aids
are permitted, e.g. phones.
You will be provided with: None
Instructions: Type your answers into the text answer boxes below each question. For some
questions, it is advisable to build tables with headings into your answers.

2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
https://canvas.sydney.edu.au/courses/35010/quizzes/149463 3/22
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LATEST Attempt 1 less than 1 minute 0 out of 0 *
Submitted Nov 23 at 15:57
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Not yet marked / 0 ptsQuestion 1
Your Answer:
Unanswered
"The AASB 101: Financial Statement Presentation approach of
separating other comprehensive income items into two (2) separate
categories of reclassification adjustments is necessary so relevant
information is presented in financial statements".
Required:
Explain to what extent you agree with this statement. As a supporting
example, include one (1) other comprehensive income item.
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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One suggested way of answering this question is:
State clearly how much you do or not agree with the
statement, "To a large extent.......To some extent........."
Outline the AASB 101 guidance for the two other
comprehensive income item reclassification adjustment
categories, namely "will be reclassified to profit or loss" and
"will not be classified to profit or loss."
Explain your position about the statement.
Develop a relevant supporting example and state how it
supports your position on the statement. For example,
revaluation gains and losses on debt instruments measured
at FV through OCI. AASB 9 requires these amounts to be
transferred to P&L when the debt instrument is
derecognised. Accordingly, throughout the period of
ownership, all revaluation increments and decrements are
included in the "will be reclassified to profit or loss"
reclassification adjustment category in other comprehensive
income. It is important to do this to avoid double counting
and highlight to financial statement users that these amounts
that will ultimately go into the measurement of profit or loss
in a later accounting period.
THE FOLLOWING INFORMATION RELATES TO QUESTIONS 2 TO 3
Cameron is a professional accountant and financial controller for a
successful listed manufacturing company, Ball Ltd. As part of this role
Cameron is responsible for signing off Ball Ltd’s 30 June financial
statements each year. Recently Cameron was copied into an email
from Sam, the Finance Director to Alex, the chief production engineer,
which stated “due to a proposed industry change, Ball Ltd’s major
manufacturing plant will close down on 31 July 2020 and the plant’s
staff will be made redundant at that time”.
Later that day at a lunch time soccer match, Sam had the following
conversation with Cameron. “Hey Cameron, the shareholders are
currently in negotiations to sell their interest in Ball Ltd. It is probably
best to ignore any email about what is happening in industry and the
effect this could have on the financial statements. Just think if the
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proposed company sale goes ahead, you’ll get that promotion and a
well-deserved bonus”.
Not yet marked / 0 ptsQuestion 2
Your Answer:
Unanswered
Required:
Identify and explain the ethical dilemma Cameron faces.
An ethical dilemma occurs when there is a conflict. A choice has
to be made between different alternatives.
In this situation, the conflict is whether Cameron should not
follow Sam’s request and recognise this event in the Ball Ltd’s
financial statements for the year ended 30 June 2020 or
whether Cameron should follow Sam’s request to ignore the
event.
Not yet marked / 0 ptsQuestion 3
Your Answer:
Unanswered
Required:
Explain whether the confidentiality ethical principle under APES 110:
Code of Ethics for Professional Accountants would be at risk if
Cameron follows the course of action suggested by Sam.
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From the information in this scenario, the confidentiality ethical
principle would not be at risk. The confidentiality principle
focuses on maintaining business relationships and not
disclosing information to third parties without proper and specific
authority, unless there is a legal duty to disclose.
Although there is mention of a proposed shareholder sale of the
company’s shares, the key ethical issue is about how the
intended manufacturing plant closure should or should not affect
Ball Ltd’s financial statements for the year ended 30 June 2020.
Sam’s conversation at the lunchtime soccer match and the
reminder to Cameron about the promotion puts at risk
Cameron’s integrity and objectivity. When identifying ethical
principles at risk, they need to relate to the specific ethical
dilemma.
THE FOLLOWING INFORMATION RELATES TO QUESTIONS 4 TO 5
On 1 July 2019, Talkit Ltd signed a two (2) year contract to supply
electronic goods to a customer for the following prices.
Price per electronic
good
Sales Volume
$500 0-1,000 electronic goods
$475 1,001-1,500 electronic goods
$450 More than 1,500 electronic goods
Talkit Ltd expects 2,000 electronic goods will be sold to the customer
under this contract. The contract is a valid contract under AASB15:
Revenue from Contracts with Customers.
On 20 June 2020, Talkit Ltd sold 1,350 electronic goods to the
customer.
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On 15 June 2021, Talkit Ltd sold 650 electronic goods to the customer.

Talkit Ltd is a reporting entity and has adopted a 30 June year end
balance date.
Not yet marked / 0 ptsQuestion 4
Your Answer:
Unanswered
Required:
Considering AASB 15:
(a) Identify one (1) professional judgment that would be required when
accounting for transaction(s) under this contract in Talkit Ltd’s financial
statements for the year ended 30 June 2020; and
(b) Explain how the requirement(s) in AASB 15 will assist with this
professional judgment.
(a) The most likely professional judgement is in relation to
determining Step 3 of the AASB 15 model, the transaction price
under the contract. The exact amount is uncertain and there is
variable consideration depending upon the total number of
electronic goods Talkit Ltd will eventually sell to the customer.
(b) AASB 15 assists with professional judgments for estimating
variable consideration through the use of the expected value or
most likely amount calculation methods. These set out how to
calculate variable consideration. In this contract, the expected
value method is used because there is a range of possible
outcome amounts. For example, TalkIt Ltd could eventually sell
2,000, 1,950 or 1,700 electronic goods to the customer.

2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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Not yet marked / 0 ptsQuestion 5
Your Answer:
Unanswered
Sam, the Talkit Ltd Finance Director, is unsure about the amount of
revenue that be recognised in the financial statements for the year
ended 30 June 2021.
Required:
Prepare a workpaper that explains how the amount of revenue
recognised in Talkit Ltd’s financial statements for the year ended 30
June 2021 will be calculated.
Include all workings.
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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There are different ways to set out the workpaper. The following
is an example only. Ensure your workpaper clearly sets out each
part of the calculation and includes related explanations of
the"how" for each of these parts.
Firstly, using price and sales volume information from the
contract, the total expected transaction amount under this
contract for Talkit Ltd is calculated.
1,000 electronic goods x $500= $500,000
500 electronic goods x $475 = $237,500
500 electronic goods x $450 = $225,000
Total expected amount to be received from the customer is
$962,500
Secondly, the expected amount per electronic good sold is
calculated, $962,500/2,000 electronic goods = $481.25
Thirdly the expected amount per electronic good sold is applied
to the number of goods sold during the 2021 year.
650 electronic goods were sold under this contract during the
year ended 30 June 2021. Therefore revenue of $312,813 (650
x $481.25) would be recognised in Talkit Ltd's financial
statements for the year ended 30 June 2021.
THE FOLLOWING INFORMATION RELATES TO QUESTIONS 6 TO 7
Plug Ltd commenced operations on 1 July 2019.
The following information has been extracted from Plug Ltd’s financial
statements for the year ended 30 June 2020:
Statement of financial performance for the year ended 30 June 2020
$
Accounting profit (before income
tax expense)
250,000
Repairs and maintenance (non 12,000
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deductible)

Statement of financial position as at 30 June 2020
Carrying amount at 30 June 2020
$
Interest receivable 1,000
Consulting income in advance 1,500
Prepaid advertising 4,000

Other information:
Interest receivable amount of $1,000 was due on 1 July 2020. The
related interest revenue will be taxed on a cash basis.
Plug Ltd paid total advertising costs of $10,000 during the year
ended 30 June 2020 which were deductible at the time of payment.
Consulting income of $1,500 was received on 30 June 2020 in
relation to a contract with a customer that had not been completed
at 30 June 2020. The consulting revenue was assessable for tax
purposes at the time of receipt.
Except for repairs and maintenance, all other expenses are
deductible.
Assume a tax rate of 30%.
Not yet marked / 0 ptsQuestion 6Unanswered
Required:
Calculate the taxable income of Plug Ltd for the year ended 30 June
2020.
Include all workings.
NOTE: In your answer it is advisable to build a table with headings.
Below is a suggested form of presentation. Use the table tool (
Table Tool.png ) to build the table and enter your answer into the
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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Your Answer:
table. Additional lines maybe required. Workings can be included
above the table.
Workings:

$
Accounting profit (before income
tax expense)
x
Taxable income

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Workings:
Prepaid advertising: Cash paid $10,000 - closing balance
$4,000 = advertising expense of $6,000
$
Accounting profit (before income
tax expense)
250,000
Add
Repairs and maintenance 12,000
Advertising expense 6,000
Consulting revenue received in
advance
1,500
Less:
Advertising paid 10,000
Interest receivable 1,000
Taxable income 258,500


Not yet marked / 0 ptsQuestion 7Unanswered
Required:
Complete the worksheet below for Plug Ltd as at 30 June 2020.
Calculate the tax base, the temporary tax difference and the amount of
any deferred tax, presenting them in the correct columns.
Include all workings.
NOTE: In your answer it is advisable to build a table with headings.
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Your Answer:
Below is a suggested form of presentation. Use the table tool (
Table Tool.png ) to build the table and enter your answer into the
table. Additional lines maybe required. Workings can be included
above the table.
Workings:
Item Carrying
Amount
Tax
Base
Taxable
Temporary
Differences
Deductible
Temporary
Differences
Deferred
Tax
Liability
Deferred
Tax
Asset
Interest
receivable
1,000
Consulting
income in
advance
1,500
Prepaid
advertising
4,000

Item Carrying
Amount
Tax
Base
Taxable
Temporary
Differences
Deductible
Temporary
Differences
Deferred
Tax
Liability
Deferred
Tax
Asset
Interest
receivable
1,000 0 1,000 300
Consulting
income in
advance
1,500 0 1,500 0 450
Prepaid
advertising
4,000 0 4,000 1,200
THE FOLLOWING INFORMATION RELATES TO QUESTIONS 8 TO
10
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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Red Ltd is planning to purchase 100,000 shares in PHB Ltd on 1 July
2020 for $3.50 per share and will incur transaction costs of $375 at this
date. All transactions will be paid in cash on 1 July 2020.
The anticipated fair values of PHB Ltd shares at the end of future
accounting periods are:
30 June 2021 $3.30
30 June 2022 $3.75
Red Ltd is a reporting entity and has adopted a 30 June year end
balance date.
The Finance Director is unsure how this investment could affect Red
Ltd’s financial statements and requires assistance with the following
questions.
Not yet marked / 0 ptsQuestion 8
Your Answer:
Unanswered
Required:
Using the FV through P&L method, calculate the total amount that
would be presented in Red Ltd’s profit and loss for the year ended 30
June 2021 in relation to the 100,000 PHB Ltd shares.
Include all workings.
Solution:
Change in fair value 100,000 x ($3.50-$3.30) = $20,000 loss
plus transaction costs of $375 = total loss amount of $20,375
that would be presented in Red Ltd’s profit and loss for the year
ended 30 June 2021.
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Not yet marked / 0 ptsQuestion 9
Your Answer:
Unanswered
Required:
Using the FV through OCI method, prepare all journal entries in
relation to the 100,000 PHB Ltd shares for the year ended 30 June
2021.
Include all workings. Narrations are not required.
Note: In your answer it is advisable to build a table with headings.
Below is a suggested form of presentation. Use the table tool (
Table Tool.png ) to build the table and enter your answer into the
table. Additional lines maybe required. Workings can be included
above the table.
Workings:

Date Particulars Debit $ Credit $

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Workings:
100,000 x 3.50 = $350,000 plus transaction costs of $375 =
$350,375 (01/07/2020)
FV at 30 June 2021 is $3.30 per share = $330,000
Change in FV = $20,375
Date Particulars Debit $ Credit $
01/07/2020 Investment in
PHB Ltd
350,375
Cash at bank 350,375
x
30/06/2021 Investment
revaluation
surplus
20,375
Investment in
PHB Ltd
20,375


Not yet marked / 0 ptsQuestion 10Unanswered
The Finance Director advises you Red Ltd will sell the 100,000 PHB
Ltd shares on 30 June 2022.
Required:
Using the FV through OCI method, prepare all journal entries in
relation to the 100,000 PHB Ltd shares for the year ended 30 June
2022.
Include all workings. Narrations are not required.
Note: In your answer it is advisable to build a table with headings.
Below is a suggested form of presentation. Use the table tool (
Table Tool.png ) to build the table and enter your answer into the
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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Your Answer:
table. Additional lines maybe required. Workings can be included
above the table.
Workings:

Date Particulars Debit $ Credit $
x

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Workings:
FV at 30 June 2022 is $3.75 per share = $375,000
Change is FV is $375,000 - $330,000 = $45,000
Credit adjustment of $45,000 to the Investment Revaluation
Surplus account at 30/06/2022
Less:
$20,375 debit balance at 30/06/2021 =$24,625 credit closing
balance at 30/06/2022

Date Particulars Debit $ Credit $
30/06/2022 Investment in
PHB Ltd
45,000
Investment
revaluation
surplus
45,000
x
Cash at Bank 375,000
Investment in
PHB Ltd
375,000
x
Investment
revaluation
surplus
24,625
Retained
earnings
24,625

Not yet marked / 0 ptsQuestion 11Unanswered
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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On 1 July 2018 Blue Ltd issued 5,000 convertible notes with a face
value of $5,000,000 for a term of four (4) years. The coupon interest
rate is 4% per year while the market interest rate for comparable non
convertible debt is 6% per year.
Blue Ltd has adopted a 30 June year-end balance date. Blue Ltd uses
present value tables to calculate amounts rounded to the nearest whole
dollar. Click here
(https://canvas.sydney.edu.au/courses/35010/files/17765560/download?
download_frd=1) to access the present value tables. An extract is
also provided below.
Required:
At 30 June 2022 the convertible note holders do not exercise the note
options to convert the debt outstanding to equity instruments.
Prepare the journal entry(ies) at 30 June 2022 to record this event in
Blue Ltd’s financial statements under AASB 132.
Include all workings. Narrations are not required.
Note: In your answer it is advisable to build a table with headings.
Below is a suggested form of presentation. Use the table tool (
Table Tool.png ) to build the table and enter your answer into the
table. Additional lines maybe required. Workings can be included
above the table.
Workings:

Date Particulars Debit $ Credit $
x


2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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Your Answer:
Workings:
Using present value tables (n = 4 years, i = 6%)
Interest payments 5,000,000 x 4% = 200,000 x 3.465 = 693,000
Principle payment 5,000,000 x .792 = 3,960,000
Total liability = 4,653,000
Equity 347,000
Total proceeds 5,000,000

Date Particulars Debit $ Credit $
30/06/2022 Convertible
notes liability
5,000,000
Cash at bank 5,000,000
x
Convertible
notes option
(equity)
347,000
Retained
earnings
347,000

THE FOLLOWING INFORMATION RELATES TO QUESTIONS 12 TO
13
DT Ltd, a company in the extractive industry, acquired the rights to
explore four (4) different areas of interest being Areas A, B, C and D on
1 July 2018. The cost of each area’s right was $175,000.
During the year ended 30 June 2019, initial exploration activity results
indicated only Areas A, B and D were likely to produce economically
2021/11/23 下午3:57 Mock final exam : ACCT2011 Financial Accounting A
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recoverable reserves. On 1 June 2019, DT Ltd successfully acquired
mining leases over Areas A, B and D for the costs of $270,000,
$380,000 and $410,000 respectively. Operations in Areas A, B and D
were ongoing from 1 June 2019 to 30 June 2019 and no indicators of
impairment existed at any time throughout the year.


Not yet marked / 0 ptsQuestion 12
Your Answer:
Unanswered
Required:
Calculate the carrying amount of the “Exploration and Evaluation” asset
that would be recognised in DT Ltd's statement of financial position as
at 30 June 2019.
Include all workings.

The following costs in relation to Areas A, B ad C would be
recognised as an Exploration and Evaluation asset at 30 June
2019.
Area Exploration
rights
Lease costs Total
A 175,000 270,000 445,000
B 175,000 380,000 555,000
D 175,000 410,000 585,000
Total 525,000 1,060,000 1,585,000
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Not yet marked / 0 ptsQuestion 13
Your Answer:
Unanswered
Due to the Government announcing extractive industry subsidies will
be cut in the next financial year, DT Ltd made a professional judgment
to abandoned Area B on 1 July 2019.
Required:
Explain how this decision would effect the two (2) accounting balances
recognised in DT Ltd financial statements for the year ended 30 June
2020.
The Government's withdrawal of the industry subsidies and the
subsequent professional judgment to abandoned Area B on 1
July 2019 is an indicator of impairment for this area of interest.
Subsequently, Area B's total rights and lease costs of $555,000
that had been recognised as part of the Exploration and
Evaluation asset closing balance of $1,595,000 at 30 June 2019
would decrease and the Area B exploration and evaluation costs
of $555,000 would be transferred to the impairment loss
expense account in DT Ltd's statement of financial performance
for the year ended 30 June 2020.