Professional Documents
Culture Documents
Q2: What type of budget would you refer to if you wanted to analyse revenue, cost of sales and expenses
For the business in a specific period?
Sales budget
Profit and loss(P&L)budget
Cash budget
Master budget
Operational budgets
Q3: List four possible external factors that could contribute to profit or loss.
Q4: You’re preparing to establish budgets. List three questions you might ask yourself when reviewing the
Business plan prior to budget preparation.
Are there critical dates in the plan to be aware of?
What business initiatives require financial resources in the next financial cycle? Do you have the
financial resources required?
Are there any initiatives that you know will generate financial resources in the next financial
cyale?
Q5: You’re preparing to establish budgets. List three questions you might ask yourself when reviewing
. Cash flow trends prior to budget preparation
Q6: List four areas of legislation that impact on the preparation of budgets and other financial documents.
Work health and safety (WHS)
Industrial relations
Insurance
Contracts
Q7: What is the minimum amount of superannuation that must be paid to comply with statutory
Requirements?
9.5% of the employees’ ordinary times earnings each quarter until 30th June 2021 .
Q8: What website or department can you refer to for more information about compliance with FBT, CGT?
And GST requirements?
Australian Taxation Office (ATO),
www.ato.gov.au
Q9: What is SBR software and how does it improve efficiency?
Standard Business Reporting(SBR) help your tax returns or BAS and allows you to lodge statements
directly to the ATO.
Q10: Sutherland Resort purchases 12 bottles of 2004 Grange Hermitage wine for $8,470 GST inclusive.
Calculate the GST amount.
$8470/11=$770
Q11: You receive payment for goods and services totalling $882,200 including GST of $80,200. All
Expenses for the same period that required the payment of GST were $23,560 (excluding wages
And interest expense.
Calculate the GST liability.
GST liability= GST collected – GST paid
GST liability= $80,200 –$2,356
GST liability=$77,844
bilateral and regional trade agreements typically seek to reduce trade barriers between partner
countries by determining purchase guarantees, removing tariffs, import quotas and other trade
barriers. Parties to be agreement are given preferential treatment when facilitating trade and
establishment commercial relationships.
Q13: There are eleven different terms used to indicate different situations regarding the purchase,
Movement and shipping of goods internationally. What is the name of this collective group of terms?
International Commercial Terms(INCOTERMS)
Q14: List four tips for choosing the right financial software for your business.
Know what financial data you need to collect and report on.
See if there are products on the market which will make this process easier, quicker or more
cost-effective for you and your employees.
Develop procedures that explain when and how the technology should be used.
Trial any new software programs before implementing them across all departments.
Q15: List four questions you might ask yourself when reviewing software.
Does the software calculate all payroll requirements?
Does the software track stock, orders, quotes?
Does the software allow for multiple users?
Does the software
Delegated authorities
Internal control procedures
Limits on volumes and types of financial transactions
Reporting periods
Q4: List three reasons why it’s important to record resource allocation.
To track performance
To analyse efficiency and productivity.
To manage costs and cash flow
Q5: List four sources of data you might use to determine allocations for resources.
Q6: You’ve decided to make a new service available at your workplace. This will require an increase in the
number of employees. Which areas of your budget are likely to be affected?
Q2: List four financial risk situations that could occur if you don’t have an effective risk management
Breaching contracts
Not paying the correct amount of tax
Being underinsured
Record keeping errors
Failing to maintain and/or secure records
Q3: List five ways you can prevent misappropriation of funds at your workplace
Implement internal control systems. You’ll learn more about this shortly.
Monitor suspicious behaviour in the workplace.
Test any systems you put in place to make sure there are no loopholes for manipulating funds.
Have a second person authorise large transactions and amounts.
Spot-check accounting records.
Q4: A colleague asks you the following question. ‘What does a positive expense variance mean?’ How
would you respond?
A cash flow budget helps businesses plan when they will receive cash so they can coordinate their
payments. Careful planning is required so you don’t drain all financial resources and place the
business in jeopardy.
Q7: List two operational issues you might develop a contingency plan for.
Equipment breakdown
Power failure
Q8: Your budgeted variable costs were $60,000 and the actual variable costs were $50,000. What must
You do to analyse the discrepancy?
‘flex the budget at the end of the period in order to make a valid comparison’ between the figures.
This means changing the budget in response to changes in sale and expenses. You alter the format
of the budget from a flexible budget to a flexible budgets by modifying it to reflect the changed
conditions.
Q9: What four principles must you follow to ensure an accurate and reliable audit trail?
Due diligence is the steps and effort you take to avoid committing an offence. It’s the process and
care you take to ensure you implement effective systems and processes and minimise the likelihood
of a breach occurring due to complacency, ignorance or miscommunication.
Q2: A colleague asks you the following question. ‘Should I include diagrams with my financial report?
I don’t know how formal my report should be. Can you tell me what format to use?’
How do you respond?
A report should provide clear, concise and relevant information. It should be easy for the reader to
understand and enhance their ability to make decisions and take corrective action.
Ensure the format of the data and any analysis conforms to organisational and statutory
requirements. The format should be appropriate to the formality of the report as well as the type and
amount of information can be more clearly represented pictorially using graphs, charts and other
diagrams.
A report doesn’t need to be in a totally written format. Often financial and statistical information can
be more clearly represented pictorially using graphs, charts and other diagrams.
Q3: Outline the three steps for prioritising significant issues you identify in financial statements.
Identify the issue and related problems for the business.
Rank these problems with regards to how serious the consequence would be if you failed to
address them and in consideration of the immediate resources you have available.
Make recommendations to management about which issues to address first and, ideally, what
the business can do to improve the situation.
Q4: You’ve identified a cash flow issue. What type of recommendations do you make to senior?
Management?
You are going to make recommendations about how to manage cash flow over the period of concern
and how to minimise expenditure during this period.