AUCKLAND · FACULTY OF ACCOUNTING

ACCTG102 · Accounting Concepts

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Chapter 6 of 11 · ACCTG 102

The Mid-Semester Test Playbook (Chapters 1–5)

Week 6 of ACCTG 102 Accounting Concepts at the University of Auckland carries no new content: it is the revision and sitting window for the mid-semester test, worth 20% of the final grade. The test runs on Inspera — remote, open book, non-invigilated, 50 marks in 90 minutes — and covers textbook Chapters 1–5 only, mixing multi-choice, analytical (journal entries and calculations) and written questions with no formula sheet provided. This chapter maps the question template slot by slot and compresses Chapters 1–5 into a revision synthesis you can drill against the released practice test.

In this chapter

What this chapter covers

011. The rules of the game: 20% weighting, 50 marks, 90 minutes' writing plus 5 minutes' reading and a 15-minute technical buffer, evening sitting on Inspera — open book (own notes and a calculator) but AI tools and communication strictly banned, with an academic-integrity declaration
022. The question template: MCQ warm-up (5 × 1 mark) → written/conceptual question → transaction journal run with a closing-cash proof → adjusting entries → merchandising/GST journals → inventory cost-flow computation
033. The rotating dials between sittings: perpetual vs periodic, FIFO vs weighted average (LIFO for contrast only — not permitted in NZ), GST on or off, service vs retail business
044. Pacing at 1.8 minutes per mark: a 10-mark journal question deserves about 18 minutes, and workings earn marks even when the final figure is wrong
055. Inspera answer mechanics: each debit and credit on its own line (space bar, not tab), narrations not required, round to whole numbers, show labelled workings, state assumptions
066. The no-formula-sheet ratio memorise set from Chapters 1–5: return on assets, profit margin, working capital, current ratio, current cash debt coverage, debt to total assets, cash debt coverage, gross profit ratio, operating expenses to sales, inventory turnover, days in inventory
077. Chapters 1–3 synthesis: the four financial statements and their links, A = L + E and the debit/credit grid, trial-balance limitations, the four adjusting-entry families, and closing entries through the Profit or loss summary (dividends close directly to Retained earnings)
088. Chapters 4–5 synthesis: perpetual two-entry sales, the return-vs-allowance trap (an allowance has no inventory entry), GST at the paper's stated rate, the periodic cost-of-sales chain, cost-flow methods and inventory-error effects

Worked example · free

Adjusting entries at month end — the Q8 slot

Q [5 marks]. Aro Valley Beans Ltd, a Wellington café, is preparing month-end adjustments. Its unadjusted trial balance shows: Prepaid insurance $2,400 (a 12-month policy taken out on the first day of this month); Supplies $1,800 (a count shows $700 on hand); Equipment $12,000 (straight-line, 5-year useful life, no residual value); Revenue received in advance $900 (three equal catering events, one now delivered); and wages of $480 owing but unpaid at month end. Prepare the five adjusting entries. (5 marks)

+1Insurance: one of twelve months has expired, so 2,400 ÷ 12 = $200. Dr Insurance expense 200 / Cr Prepaid insurance 200.
+1Supplies: used = ledger balance − count on hand = 1,800 − 700 = $1,100. Dr Supplies expense 1,100 / Cr Supplies 1,100.
+1Depreciation: annual charge = (12,000 − 0) ÷ 5 = 2,400, so one month = 2,400 ÷ 12 = $200. Dr Depreciation expense 200 / Cr Accumulated depreciation—equipment 200 (a contra asset — never credit Equipment directly).
+1Unearned revenue: one of three equal events is delivered, so 900 ÷ 3 = $300 is now earned. Dr Revenue received in advance 300 / Cr Catering revenue 300 — adjust by the portion satisfied, not the whole balance.
+1Accrued wages: the amount owing is given. Dr Wages expense 480 / Cr Wages payable 480. Check the set: no adjusting entry touched Cash, and every entry balances.

Five balanced adjusting entries: insurance $200, supplies $1,100, depreciation $200, unearned revenue earned $300, accrued wages $480 — each Dr = Cr, and none involving Cash.

Sia tip — The recurring trap in this slot is being told the unearned balance REMAINING rather than the amount earned: the entry is always for the movement that takes the account to its required balance. And if you have written Cash anywhere, it is not an adjusting entry.

Glossary

Key terms

Inspera: The University of Auckland's online assessment platform. The ACCTG 102 mid-semester test is sat on Inspera remotely; journal answers are typed into text boxes with each debit and credit on its own line, indented with the space bar (the tab key does not work).
Open book (this test's meaning): Your own notes — paper or electronic — and a calculator are allowed during the mid-semester test, but AI tools and communicating with anyone are strictly banned, and you sign an academic-integrity declaration. No formula sheet is provided.
Adjusting entries: Period-end entries that bring revenues and expenses into the right period: prepayments (supplies, prepaid expenses, depreciation, revenue received in advance) and accruals (accrued revenues and accrued expenses). No adjusting entry ever involves Cash.
Perpetual inventory system: The course default: purchases are debited to Inventory, and every sale takes two entries — one recording revenue at selling price, one transferring cost (Dr Cost of sales / Cr Inventory). Cost of sales is known at each sale, not just at stocktake.
Sales allowance (vs sales return): A price concession where the customer keeps the goods: only the revenue-side entry is made (Dr Sales returns and allowances / Cr Accounts receivable) with NO inventory entry. A return adds a second entry putting resaleable stock back into Inventory — a classic mid-semester trap.
GST paid / GST collected: GST paid on purchases is an asset (an input credit); GST collected on sales is a liability until remitted. Course examples work GST at an assumed 10% textbook rate for simplicity — use exactly the rate stated on your paper. GST component = inclusive amount − inclusive ÷ (1 + rate).
Profit or loss summary: The clearing account used in closing entries: revenues and expenses close into it, and its balance (the profit or loss) transfers to Retained earnings. Dividends never pass through it — they close directly to Retained earnings.

FAQ

The Mid-Semester Test Playbook (Chapters 1–5) FAQ

What does the ACCTG 102 mid-semester test look like?

It is worth 20% of your final grade: 50 marks in 90 minutes of writing time (plus 5 minutes' reading and a 15-minute technical buffer), sat remotely on Inspera in the evening. It is open book (your own notes and a calculator) but non-invigilated with an integrity declaration, AI tools and communication are banned, no formula sheet is provided, and it covers textbook Chapters 1–5 only with a mix of multi-choice, analytical (journal entries and calculations) and written questions. Confirm your semester's exact date and time on Canvas.

Is the final exam open book like the mid-semester test?

Don't assume so. The mid-semester test is confirmed open book on its Canvas assessment page. The final exam is comprehensive and the course advises it runs 2 hours, with a weighting of 50% per the University course catalogue — but its delivery mode and materials rules are advised separately on Canvas, so check the current semester's announcement rather than carrying the mid-semester rules across.

Can AI help me with mid-semester test prep in ACCTG 102?

Yes — used the right way. Sia can explain any Chapters 1–5 skill step by step: why an adjusting entry hits the accounts it does, how to decompose a GST-inclusive figure, or how a moving weighted average re-averages after each purchase. It teaches the method rather than doing assessed work for you, and no tool can promise you marks. Remember the test itself explicitly bans AI tools and any communication during the sitting — the preparation is where AI legitimately helps.

Study strategy

Exam move

Treat Week 6 as a four-move plan. First, sit Quiz 06 — it is the Chapters 1–5 test-prep quiz (the ten pre-workshop quizzes are worth 0.5% each, 5% in total), and finish Assignment 01 (WileyPlus, Chapters 1–4) early since its problems are direct rehearsal; confirm both due dates on Canvas. Second, take the released practice test on Inspera under a strict 90-minute clock with only your own notes — rehearsing the platform (space-bar indenting, workings boxes, whole-number rounding) matters as much as the content. Third, hand-write the eleven-ratio card from memory, because no formula sheet is provided. Fourth, drill the two big traps: adjust-by-the-movement in the adjusting-entries slot, and return-vs-allowance in the merchandising slot. ACCTG 102 is a 15-point Stage I course, and this one evening carries 20% of it — at stake is real protection for your GPA on Auckland's 9-point scale before exam season even starts. Attend the Week 6 revision workshop (City Campus workshops are recorded if you miss one), and pace everything at 1.8 minutes per mark.

Working through The Mid-Semester Test Playbook (Chapters 1–5) in ACCTG 102? Sia is AskSia’s AI Accounting tutor — ask any ACCTG 102 The Mid-Semester Test Playbook (Chapters 1–5) question and get a clear, step-by-step explanation grounded in how ACCTG 102 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

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