Financial Services 2019 HSC exam pack (archive)

Students should:

• provide specific detail and, where appropriate, include industry specific terminology with relevant examples (workplace/work experience)
• ensure that they read the entire question, underlining the key points to avoid missing any parts of the question
• address the key words and all elements of question.

Question 16

In better responses, students were able to:

• make a clear link between cash deposits as an asset and the corresponding double entry required by the accounting equation, increasing the owners’ equity.

Areas for students to improve include:

• providing a response without restating the question.

Question 17

In better responses, students were able to:

• provide detailed benefits and limitations of a company structure.

Areas for students to improve include:

• providing the benefits and limitations of a company structure without comparing a company structure to a sole trader structure.

Question 18

In better responses, students were able to:

• provides accurate journal entries without narratives
• complete a reversal of the incorrect entry and then record the correct entry or make the correction in a single entry or journalise the difference.

Areas for students to improve include:

• using ledger account names correctly
• considering the effect of a Goods and Services tax (GST) on the journal entry.

Question 19

In better responses, students were able to:

• clearly distinguish between a balance sheet – a statement of assets, liabilities and owner’s equity; and a trial balance – a statement of debits and credits in a double entry account book (a)
• clearly shows differences between the concepts of profit margin and mark up, some with workplace examples (b).

Areas for students to improve include:

• knowing their relevant accounting terminology
• considering the provision of numerical examples to support a written response, for example, with respect to profit margin and mark up.

Question 20

In better responses, students were able to:

• accurately prepare a bank reconciliation statement
• show the type of balance, that is, debit or credit
• correctly added or subtracted the reconciling items
• include the bank error of $36, that is, $95 minus $59.

Areas for students to improve include:

• understanding when a bank statement balance is overdrawn.

In better responses, students were able to:

• break down ‘complaints’ and ‘feedback’ and gave positives and negatives (a)
• provide a clear link between specific financial services technology and its effect on work practices (b)
• sketch at least TWO benefits of staff appraisals (c)
• clearly show why principles and ethics are important and going beyond legislative requirements (d).

Areas for students to improve include:

• breaking down the question into positive and negative and making sure all parts of the question are answered (a)
• using specific terminology used in financial services (b)
• closely reading the question. Look for plurals ‘benefits’ (c)
• reviewing the principles and ethics in the financial services industry and being able to refer to specific examples (d).

Question 22

In better responses, students were able to:

• use clear work placement examples to highlight specific training points
• refer to at least TWO pieces of legislation
• use financial services terminology to explain the importance of training
• cover all three areas with deep knowledge and understanding
• answer using clear paragraphing of main points in a logical sequence.

Areas for students to improve include:

• ensuring that work placement is referred to in each of the three areas
• the importance of industry guidelines in addressing the question.

Question 23

In better responses, students were able to:

• understand the concept of a non-current asset register
• provide details included within an asset register
• make a clear link between the asset register and information used to prepare financial statements
• calculate depreciation
• calculate the adjustment for doubtful debts
• prepare a trial balance with adjustments
• clearly distinguish between a bad debt and doubtful debt
• include the effect on the debtors account and in the financial statements.

Areas for students to improve include:

• reviewing the process of adjustments and the impact on the trial balance
• recognising that the allowance for doubtful debts can be increased or decreased
• creating new accounts for example ‘Doubtful Debts’ in the trial balance as needed
• linking the effect or purpose to both financial statements (income statement and balance sheet) – not just one financial statement.

Question 24

In better responses, students were able to:

• clearly understood how an agency could act for a financial institution (a)
• clearly understood the benefits for each of the specific areas of setting up agencies (b)
• use an example to highlight the information even though not required (a and b).

Areas for students to improve include:

• knowledge and understanding of agencies and their work.