Financial Services 2024 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 HSC content 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
• 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:

• provide two benefits of a partnership business structure over a sole trader structure, for example, sharing of expertise and increased access to fund investment.

Areas for students to improve include:

• understanding the difference between a partnership and sole trader
• understanding that limited liability is not a feature of partnerships.

Question 16(b)

In better responses, students were able to:

• demonstrate how industry-specific software can be used in the financial services industry rather than identifying the software used. For example, MYOB can be used to accurately record transactions and generate reports.

Areas for students to improve include:

• providing an outline rather than only identifying the software used.

Question 17(a)

In better responses, students were able to:

• prepare a petty cash reimbursement
• follow the correct formatting in balancing the petty cash using the template provided
• demonstrate knowledge of receipts and payment columns of the template
• calculate GST appropriately.

Areas for students to improve include:

• understanding how to format the petty cash book correctly including balancing the figures and reimbursement
• calculating GST appropriately, for example, the voucher for tea and coffee did not require GST to be applied.

Question 17(b)

In better responses, students were able to:

• complete journal entries using the correct account names of ‘Office Equipment’ in the journal rather than ‘Photocopier’.
• apply GST correctly.

Areas for students to improve include:

• understanding the Chart of Accounts including classifications
• formatting the general journal, for example, entering the debit accounts first followed by the accounts to be credited
• understanding the difference between Bad Debts and Doubtful Debts.

Question 18(a)

In better responses, students were able to:

• provide a relevant example of how a business may breach anti-discrimination legislation
• suggest an achievable strategy to prevent discrimination in the workplace.

Areas for students to improve include:

• using an example that relates to discrimination rather than work health and safety
• providing a strategy that prevents discrimination rather than describing the consequences of discrimination.

Question 18(b)

In better responses, students were able to:

• provide two clear strategies that a supervisor can use to resolve the conflict between employees
• use industry terminology appropriately, for example, negotiation and mediation.

Areas for students to improve include:

• clearly understanding the conflict resolution process of negotiation and then mediation.

Question 18(c)

In better responses, students were able to:

• distinguish between the concepts of risk assessment and risk control
• provide an appropriate example of a risk assessment and risk control. For example, a risk assessment conducted on a possible danger resulting from electrical cables spread across a floor is controlled by taping the cords to the floor to remove the tripping hazard.

Areas for students to improve include:

• understanding the difference between risk assessment and risk control
• avoiding the use of colloquial language, for example, ‘go wrong’ and ‘look over a project’
• distinguishing between financial risk and work health and safety risk.

Question 18(d)

In better responses, students were able to:

• demonstrate understanding of the features of a Chart of Accounts
• refer to both the name and associated number. For example, in the number 1001, the 1 signifies ‘Asset Account’, 2001 the 2 signifies ‘Liability Account’.

Areas for students to improve include:

• understanding Chart of Accounts and how it is used.

Question 19(a)

In better responses, students were able to:

• distinguish between an act and a code of practice.

Areas for students to improve include:

• understanding an act is legally enforceable whereas a code of practice refers to practical guides developed by an industry to ensure laws are followed.

Question 19(b)

In better responses, students were able to:

• demonstrate understanding of the order of steps in the accounting process to record a transaction from a source document through to a financial report, including a recording of a transaction in the General Journal to financial report generation.

Areas for students to improve include:

• understanding the accounting process from the initial recording of a transaction in the General Journal to financial report generation.

Question 19(c)

In better responses, students were able to:

• format the income statement using the correct headings of Revenue and Expenses
• recognise the accounts that should not be included in an income statement, for example, GST is on the balance sheet.

Areas for students to improve include:

• knowing the format of an income statement and a balance sheet
• classifying accounts correctly, for example,  assets, liabilities, revenue, expenses and owners’ equity.

Question 20(a)

In better responses, students were able to:

• complete the process of closing entries using the trading account and profit and loss account
• use a trading account or running balance (columnar) format
• correctly calculate gross and net profit.

Areas for students to improve include:

• understanding the closing entry process and how to calculate the net profit
• understanding the difference between preparing journals entries, closing revenue and expense accounts to generate an income statement.

Question 20 (b)

In better responses, students were able to:

• prepare a supplier reconciliation
• explain the need to investigate discrepancies by contacting the supplier to resolve errors in delivery and invoicing.

Areas for students to improve include:

• understanding the difference between a supplier reconciliation and a bank reconciliation
• recognising the importance of contacting the supplier to resolve issues rather than making adjustments to accounts.

Question 20(c)

In better responses, students were able to:

• classify accounts correctly and identify which accounts belong on the balance sheet
• complete the balance day adjustments required, for example, creating the provision for doubtful debts account.

Areas for students to improve include:

• understanding the difference between a trial balance and a balance sheet format
• understanding the process of journaling the balance day adjustments and the impact on financial reports.

Question 21(a)

In better responses, students were able to:

• demonstrate an understanding of accuracy, authenticity and completeness as individual elements of a transaction
• use relevant examples of transactions related to an agency.

Areas for students to improve include:

• understanding the role of an agency and the services provided
• applying the terms accuracy, authenticity and completeness to the financial services industry.

Question 21(b)

In better responses, students were able to:

• demonstrate an understanding of the policies and procedures for record-keeping used throughout the records continuum, clearly indicating the procedures in creating, maintaining and disposing of records.

Areas for students to improve include:

• understanding the three parts of the record continuum
• applying financial industry appropriate workplace examples throughout the record continuum.

Question 21(c)

In better responses, students were able to:

• demonstrate understanding of how to process client payments to prevent errors within a business
• provide specific examples of procedures that can be used to prevent errors in processing payment, for example, checking credit card expiry dates.

Areas for students to improve include:

• understanding how database system controls are used to ensure the integrity, security and accuracy of information used to process client payments
• understanding the syllabus content regarding databases and client payments.

In better responses, students were able to:

• demonstrate understanding of the features of effective communication, for example, verbal using an appropriate tone, body language, active listening and questioning techniques
• demonstrate understanding of teamwork skills by working collaboratively and delegating tasks to ensure deadlines are met in a timely manner, with high-quality customer service, having product knowledge and keeping current with changes in the financial services industry
• communicate the relationship between the concepts in the question and provide a structured response using paragraphs
• provide specific financial services industry examples and use financial services terminology throughout the responses.

Areas for students to improve include:

• incorporating specific features of communication, customer service and teamwork skills into the response rather than making generalised statements
• providing industry examples to demonstrate how the skills will improve the performance of a worker in the financial services industry.