Financial Services 2022 HSC exam pack

Students should:

• read the question carefully to ensure important components of the question are not missed
• answer with more than one example where the question asks for more than one
• have a clear understanding of key words in the question and recognise the intent of the question and its requirements
• engage with what the question is asking rather than presenting a pre-prepared response
• relate to the question throughout the response rather than just at the beginning
• demonstrate knowledge and understanding of the examinable units of competency from the syllabus
• communicate ideas and information using relevant workplace examples and industry terms
• be prepared to address a range of industry issues
• demonstrate knowledge of employability skills relevant to various situations
• include relevant annotations when including a diagram
• review their response to ensure that it addresses question requirements
• present a logical and cohesive response that answers the question.

Question 16(a)

In better responses, students were able to:

• describe a benefit of working in a place that values equal employment opportunities rather than outlining the nature of an equal employment opportunity policy
• refer to a financial services workplace example
• make a clear link between making business decisions to a benefit to the organisation, based on merit.

Areas for students to improve include:

• using a financial services workplace example rather than a general workplace example
• following the directive term and providing enough detail in the response.

Question 16(b)

In better responses, students were able to:

• outline two benefits rather than one benefit
• ensure that the benefits of professional accreditation relate to the worker and not the organisation.

Areas for students to improve include:

• providing a clear link to improvements for the worker
• ensuring that the two benefits were distinctly different to each other rather than using a similar concept, for example, the benefit of earning a promotion will generally result in an increase in wages, or a more distinct second benefit would have been a wider range of job opportunities.

Question 17(a)

In better responses, students were able to:

• outline a range of relevant content to be included in a checklist
• use specific examples rather than general wording, for example, listing the requirements for an ergonomic workspace including monitor height, footrest, supportive chair, ensuring correct posture and identifying trip hazards and electrical hazards
• provide the response in dot points to reflect a checklist.

Areas for students to improve include:

• ensuring that students understand the nature of Work Health and Safety rather than confusing the term with privacy legislation or performance management
• recognising that a checklist contains more than one item
• ensuring adequate detail is provided rather than generic responses such as ergonomics.

Question 17(b)

In better responses, students were able to:

• display a clear understanding of Work Health and Safety policy in a financial services industry context
• identify a specific external and internal source of Work Health and Safety information
• provide detailed characteristics of the purpose of each source, with detailed reasoning as to why it exists or why someone would use it.

Areas for students to improve include:

• identifying where Work Health and Safety information can be found
• understanding how Work Health and Safety information is used
• understanding the difference between internal and external sources of workplace Work Health and Safety information.

Question 18(a)

In better responses, students were able to:

• understand the differences between liabilities and owner’s equity
• provide clear and brief definitions for the terms
• recognise and use these terms in the context of accounting.

Areas for students to improve include:

• articulating the characteristics of key accounts
• reviewing the differences between expenses and liabilities
• developing an understanding of the relationship between profits and owner’s equity.

Question 18(b)

In better responses, students were able to:

• complete simple financial mathematical calculations
• distinguish between the formulas used to calculate margins and mark-up.

Areas for students to improve include:

• understanding the relationship between mark-up and costs
• understanding the relationship between margin and profit
• including all steps in the working out when performing calculations.

Question 18(c)

In better responses, students were able to:

• complete a correctly formatted petty cash book
• correctly format the petty cash reimbursement
• correctly create a total of all accounts after the transactions were completed.

Areas for students to improve include:

• completing a petty cash book for a range of transactions
• correctly calculating GST
• using the correct formatting of reimbursement.

Question 19

In better responses, students were able to:

• demonstrate knowledge of various workplace documents available in a financial services organisation
• demonstrate how workplace documents assist employees starting a new job to understand their role and responsibilities
• provide relevant examples and/or names of workplace documents.

Areas for students to improve include:

• identifying relevant workplace documents
• understanding the information contained in workplace documents and how it is used by employees.

Question 20(a)

In better responses, students were able to:

• correctly remove the GST from the purchase price of an asset prior to depreciating it
• calculate depreciation for a part of a year
• use fractions effectively
• record depreciation using the reducing balance method.

Areas for students to improve include:

• developing an understanding that GST is not depreciable and therefore must be excluded from the asset’s value prior to calculating depreciation
• identifying that for the first-year, depreciation should be calculated for only part of the year (5 months)
• understanding the difference between straight line and reducing balance methods for calculating depreciation and using the appropriate procedure.

Question 20(b)

In better responses, students were able to:

• perform the reversal journal entries to reinstate Accounts Receivable for $660
• record the correct journal for the receipt of the cash payment for the Accounts Receivable.

Areas for students to improve include:

• understanding the difference between bad debts (expenses) and bad debts recovered (income)
• reviewing the process of recording the general journal required for bad debts recovered and the treatment needed for GST.

Question 20(c)

In better responses, students were able to:

• prepare an Income Statement using industry standard formatting
• demonstrate an understanding of which accounts were required in the Income Statement and included in the Net Profit calculation
• distinguish which accounts were not to be used.

Areas for students to improve include:

• developing an understanding of account classifications relevant for the preparation of an Income Statement, for example, revenue and expense accounts
• calculating Net Profit.

In better responses, students were able to:

• distinguish between efficiency and accuracy and use separate workplace examples
• provide clear and accurate definitions for efficiency and accuracy and explain how their strategies relate to improving the organisation’s current achievements or to a known best-practice standard in the industry
• explain the steps in their procedures that cause or relate to accuracy or efficiency
• identify a range of varied procedures with specific examples in the financial services sector to reflect higher industry knowledge of best practices of currency, compliance and regulatory standards
• use correct industry terms at a high level, for example, referring to Acts, reconciliations, cross-checking and accounting software.

Areas for students to improve include:

• understanding the causes of efficiency and accuracy through the development of workplace procedures
• distinguishing between procedures and policies, understanding which ones to use in the response
• using procedures to demonstrate deeper understanding of the financial services industry such as referring to verification procedures, specific accounting procedures, using new technology in the industry and providing specific details of what information must be cross-checked in practice
• increasing the use of technical financial language explaining the procedure in strategies towards journals, ledgers, trial balances, reconciliations, segregation of duties and specific WHS protocols.

Question 22(a)

In better responses, students were able to:

• recognise the differences between bad debts and doubtful debts
• support their explanation by providing reasons for accounts receivables to be written off as a bad debt, for example, a debtor may become bankrupt
• apply the doubtful debts percentage to the accounts receivable amount for future debts which will become the doubtful debts account as these debts may become non recoverable.

Areas for students to improve include:

• calculating doubtful debts
• understanding the difference between debtors and creditors.

Question 22(b)

In better responses, students were able to:

• complete a reconciliation of accounts payable
• clearly explain the process of investigating the discrepancy and communicating with the supplier to resolve the discrepancy
• demonstrate understanding of the concepts of applying discounts received and credit notes.

Areas for students to improve include:

• developing an understanding of the difference between bank reconciliation and accounts reconciliation
• understanding the process of reconciliation is only the first step in determining discrepancies
• communicating the process of how to proceed with the discrepancies once they have been found on the reconciliation
• correctly formatting a reconciliation.

Question 23(a)

In better responses, students were able to:

• demonstrate knowledge of typical processes for making payments by clearly describing the steps undertaken
• follow the directive term, ‘describe,’ giving detail about the process.

Areas for students to improve include:

• understanding the difference between creditors and debtors
• identifying the source documents that may be used to verify invoices prior to payment
• following the directive term.

Question 23(b)

In better responses, students were able to:

• provide a range of relevant strategies that will ensure confidentiality and privacy
• provide logical reasons as to how these strategies contribute to confidentiality and privacy
• provide examples using a range of different records including softcopy and hardcopy.

Areas for students to improve include:

• using correct terminology when referring to strategies
• providing comprehensive reasons as to why the strategies to contribute to increasing privacy and confidentiality
• using the collection of data, storing of data and disposal of data to understand how confidentiality and privacy is ensured.

Question 23(c)

In better responses, students were able to:

• demonstrate an understanding of the function of an agency by using examples such as invoice payments, account transfers, credit-card applications, and personal loan applications
• provide a range of unique disadvantages that were not simply contrary (or opposite) to the stated advantages
• explain a logical advantage and disadvantage applicable for each of the three stakeholders
• use relevant examples and current industry terms.

Areas for students to improve include:

• distinguishing between an agency such as a post office, newsagent or general store and the financial services institution, such as a bank, superannuation or financial planning institution
• using examples of financial transactions that occur via an agency
• ensuring that all elements of the question are addressed.