Question 11 pts
Financial data is a set of information that shows the financial health of the business. The company uses this data to analyse the business performance and to plan their strategies. External people and organisations used the data to determine the creditworthiness of the business and to determine whether they comply with the government regulations and legislation.
Select two (2) types of financial statements from the below list and explain their purpose in establishing and reviewing profits and losses.
Types of financial statements
Income statement.
Cash flow statement.
Balance sheet.
Note to Financial Statements.
Statement of change in equity.
Question 21 pts
Probity refers to the act of behaving with integrity, fairness and honesty. All organisations and their staff need to maintain probity.
Review the requirements for financial probity. Then discuss requirements for financial probity and the benefits involved in conducting financial probity checks for your employees.
Question 31 pts
Accounting principles are the guidelines that an organisation must follow when reporting financial information. It guides the accounting process on how to record, analyse, verify, and report the business’s financial position.
From the list below select two (2) principles of accounting and financial systems and discuss.
Accrual principle.
Consistency principle.
Cost principle.
Full disclosure principle.
Going concern principle.
Matching principle.
Monetary unit principle.
Revenue recognition principle.
Question 41 pts
Discuss the key functions of the financial management software, and identify five (5) examples of accounting software that can be used by businesses to track their business operations and automate their financial statements.
Question 51 pts
A financial budget is a budget that shows the company strategies for managing its assets, cash flow, income and expenses. It provides a complete picture of the financial health of the business. Budgets fall under two basic processes. A fixed budget or a flexible budget.
In developing a budget there are key components several of which are listed below, Select One (1) and discuss.
Set realistic goals.
Gather financial information.
Record all the revenue sources.
Determine business expenses.
Track business profit or loss.
Make necessary adjustments.
Set up an emergency fund.
Plan and conduct regular review.
Question 61 pts
Below are listed a number of legislation and conventions relevant to financial management in an organisation. Select one and discuss in no less than fifty (50) words
Corporation Act 2001(Cth) (Corporation Act)
Australian Securities Exchange (ASX)
Australian Securities and Investment Commission (ASIC)
Australian Accounting Standards Board (AASB)
Work health and safety (WHS)
The Competition and Consumer Act 2010 (CCA)
Question 71 pts
Taxes in Australia are administered and collected by the Australian Taxation Office (ATO) and, in some cases, state government revenue offices. The key taxes affecting businesses are Company (income) Tax, Capital Gains Tax (CGT) and the Goods and Services Tax (GST). Discuss in no more than fifty (50) words each of these key taxes.
Company tax
Capital Gains Tax
Goods and Services Tax