Microsoft Word - BSBFIM601 Assessment 1 v2.1 Crown Institute of Business and Technology Pty Ltd ABN XXXXXXXXXXNational Provider No: 91371 CRICOS Provider Code: 02870D North Sydney Capmpus: 116 Pacific...

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Microsoft Word - BSBFIM601 Assessment 1 v2.1 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888 Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888 BSBFIM601 Assessment 1 v2.1 Page 1 of 3 BSBFIM601 Manage finances Assessment Task 1: Assignment Plan for financial management Question- 1: a) Explain in one paragraph what is the purpose of conservatism? b) Take time to explore the AASB’s website at www.aasb.gov.au and the two key accounting that are directly relevant to gathering revenue data for statutory recording and reporting, please explain in a paragraph? c) According to the AASB, what does a set of financial statements comprise? d) Review the features of off-the-shelf business management and accounting software products. Question -2: a) Calculate the revenue, gross profit and net profit margins for these products. Product COGS/ unit Fixed costs/unit Selling price/unit Gross profit/un it Units sold Revenue Gross profit margin Net profit margin Front pocket wallet $27.00 $16.00 $89.00 $62.00 40 Compact smart phone wallet $29.00 $17.00 $99.00 $70.00 37 b) What is the formula for calculating the contribution margin? c) When calculating the contribution margin, why are only variable costs considered? d) In what three ways does horizontal analysis look at the change in each item of the financial statements? Question- 3: Explore the ATO’s website, visiting the sections for business, non-profit organizations and superannuation. a) What are the due dates for lodging and paying an organization’s business activity statement (BAS) online? b) What are the due dates for an organization’s lodgment of their income tax return? Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888 Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888 BSBFIM601 Assessment 1 v2.1 Page 2 of 3 Establish budgets and allocate funds Question -4: a) What are the three budgets and budgeted statements should an organization’s matter budget include to ensure effective decision-making and probity and to meet statutory and legislative requirements? b) Explain the difference between incremental and zero-based budgeting methods. c) Is zero–based Budgeting a more appropriate method of allocating resources for organizations with new strategies requiring new organizational activities? Explain your answer in a paragraph Question-5: a) What is the formula to calculate an organization’s net cash position? b) During the budget development processes, when are qualitative methods more commonly used? c) Conduct research into appropriate qualitative and quantitative forecasting methods. i. Provide two examples of qualitative analysis techniques or tools. ii. Provide two examples of quantitative analysis techniques or tools. d) In preparing the expenses budget, should the variable costs be excluded? Why or why not? Question- 6: Explain in a paragraph, why it is essential that budgets are clearly explained to all staff, and why managers must use active listening techniques to do so. Implement budgets Question-7: a) Conduct research on ‘due diligence ‘. Explain the difference between supplier due diligence and customer due diligence. b) Explain the value of supplier due diligence in managing procurement risk. Question- 8: What measures might you implement if your analysis of the payables ageing summary identified that the organization is consistently late in paying bills? Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888 Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888 BSBFIM601 Assessment 1 v2.1 Page 3 of 3 Report of finances Question -9: a) According to the ‘AASB Standard 101 Presentation of Financial Statements’, what is the purpose of a supporting note? b) Access the Standard Business Reporting website at: www.sbr.gov.au, then explain what the Australian Reporting Dictionary is. Question- 10: In one paragraph, explain the importance of reviewing and improving internal financial controls. Microsoft Word - BSBFIM601 Assessment Task 2 v2.1 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P 02 9955 0488 F 02 9955 3888 Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P 02 8959 6340 F 02 9955 3888 BSBFIM601 Assessment 2 V2.1 Page 1 of 3 BSBFIM601 Manage Finance Assessment Task 2: Assignment Question 1 a) Explain in a paragraph the relationship between Australian Accounting Standards and accounting principles. b) Define ‘financial probity’. c) Why does the balance sheet not provide an accurate picture of the organization’s profitability? d) What is the value of performing breakeven analysis? e) Why may an organization be required for and remit fringe benefits tax (FBT)? Where are FBT payments recorded in the organization’s chart of accounts? f) What ratio would you use to analyse trends in an organization’s cash flow over a number of periods? Why? Question 2 In this section you are required to consider the implementation of budgets for your organization, or one that you are familiar with. This may be an organization that you have previously worked for or one that you are in close contact with, such as your training provider, a not-for-profit organization you volunteer for, or a sporting or social club. a) Document the organizational planning and financial cycle. b) Assess your organization’s business and accounting software’s ability to meet organizational and statutory requirements. Outline your findings. c) Review your organization’s most recent profit and loss statement. If you are reviewing the statements of an organization that you do not currently work for, locate its annual report and make your calculations based on the information from the annual statements. Calculate the organization’s: • Gross profit margin • Net profit margin • Net profit ratio • Return on owner’s equity • Return on assets d) Research the organization’s tax obligations, then answer the following: I. What are the due dates for lodging and paying GST? II. What are the due dates for lodging and paying income tax? III. What are the due dates for lodging and paying relevant state/territory tax? Crown Institute of Business and Technology Pty Ltd ABN 86