Stage 2 is made up of two parts and both parts are group assessments:
Part A – Processing transactions using MYOB and preparing reports & reconciliations
Part B – Theoretical questions
Part A requires you to:
• process your transactions from Stage 1 using MYOB
• print final reports
• reconcile the differences between your Stage 1 and Stage 2 final reports
Further information on Part A can be found from page 2 onwards in this document.
Part B requires you to answer the following questions:
(i) Describe what the term ‘earnings management’ means.
(ii) Briefly explain how accrual accounting is linked to earnings management.
(iii) Provide an example of how earnings management could be undertaken in your hypothetical business in the Business Design Project.
(iv) In terms of depreciation of non-current assets, describe two instances where professional judgment of the accountant needs to be applied.
(v) Provide one example of how accounting can impact on human behavior / society in the context of your hypothetical business.
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