Glossary of common action words used in VCE Accounting examinations.

The following are action words commonly used in VCE Accounting exams based on past exams and the current Accounting Study Design (2012 2016). This Glossary has no official VCAA status. Action word Analyse Explanation To examine in detail to discover meaning. Use the information provided to make links and relationships between the factors being considered. Example: Analyse the Income Statements to identify changes in profitability. Apply To put to use. Use or employ. Use or incorporate information and ideas to a given situation. Example: Apply your understanding of FIFO to determine the value of cost of sales. Re ledger accounts. Formal process where the difference (balance) between the debits and credits is determined and recorded such that the debit side equals the credit side. This balance is brought forward to the next reporting period. Example: Balance the Capital account at the end of the reporting period. Calculate Determine from given facts, figures or information. Examples: Calculate deprecation expense for the reporting period. Calculate profit.

Balance

Classify

Arrange or include items in classes/categories. Example: Classify the items as either current or non current assets. To show how things are similar or different. Example: Compare the straight line and reducing balance methods of depreciation. To finish, end or conclude the task.

Compare

Complete

Examples: Complete the Income Statement for the reporting period. Complete the journals. Complete the recording in the stock card. Identify issues and provide points for and/or against.

Discuss

Examples: Discuss the impact of introducing discount for debtors. Discuss the effects of buying stock on credit. Discuss the use of a Debtors Control account system. To note differences between factors being considered. Example: Distinguish between product costs and period costs. To make something understandable and clear. Give reasons why a situation exists. Example: Explain the impact of depreciation expense on the accounting equation. Recognise and name. Example: Identify the correct classification of accrued expenses. To point out or show. Example: Indicate the asset in this list of accounting elements. Draw meaning from. Read or observe the information and discuss its meaning and relevance.

Distinguish

Explain

Identify

Indicate

Interpret

Examples: Interpret the graphs provided and comment on the businesss liquidity. Interpret the two Balance Sheets provided and comment on the businesss gearing. Provide evidence to support an argument or conclusion. Example: Justify your selection of using the reducing balance depreciation method. Provide a name for something. Example: Label the items as either assets, liabilities, owners equity, revenues or expenses. To transfer information from the journals to the ledger or ledgers.

Justify

Label

Post

Example: Post the relevant information from the Cash Receipts Journal to the Debtors Control account. TURN OVER

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Glossary of common action words used in VCE Accounting examinations.

Action word Prepare Explanation Get something ready for use. To put together data into a form that makes it useful. Gather relevant information for use. Example: Prepare Junes Cash Flow Statement from the cash journals provided. Provide To supply or give something. Example: Provide a definition of an asset. Use knowledge of double entry to enter information into a ledger account or accounts to determine a value or values. Example: Reconstruct the Stock Control ledger account to determine the cost of sales. Record To make entries into journals and/or stock cards and/or ledger accounts. Example: Record the transactions into the journals and stock cards. To direct attention. Examples: Refer to the correct special journal. Refer to the correct accounting principle. Choose from a range of alternatives. Example: Select the revenues and expenses from this list of elements. To display. To exhibit. To indicate. Example: Show the closing entry in the ledger account. To say. To provide a particular factor. Example: State the name of this accounting report. To sum a list of values. Example: Total the special journals.

Reconstruct

Refer

Select

Show

State

Total

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