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b) What are the two key accounting that are directly relevant to gathering revenue
data for statutory recording and reporting?
The profit and loss account which is a summary of business transactions given in certain
period and balance sheet which is a statement of financial position of the business
(usually at the end of the year)
e) Imagine you are running a retail business, selling products via a bricks and mortar
site and online. You need to manage inventory, point-of-sale and payroll, and
would like a cloud-based system to work on financial planning and management
at your warehouse, retail space and home on a variety of devices. Which product
would you purchase? Why?
I would purchase full-features of accounting programs that has financial functions to
track business such as point of sale, inventory control, customer relationship
management (CRM), billing and purchasing which help to boasts everything that is
needed in running a business.
Question 2
a) Calculate the revenue, gross profit and net profit margins for these products
c) When calculating the contribution margin, why are only variable costs considered?
The contribution margin represents the portion of a product's sales revenue that isn't
used up by variable costs, and so contributes to covering the company's fixed costs. The
concept of contribution margin is one of the fundamental keys in break-even analysis.
d) In what three ways does horizontal analysis look at the change in each item of the
financial statements?
- allows investors and analysts to see what has been driving a company's financial
performance over a number of years, as well as spotting trends and growth
patterns such as seasonality
- Analysis of critical measures of business performance, such as profit
margins, inventory turnover and return on equity, can detect emerging problems
and strengths
- Makes it easier to compare growth rates and profitability among different
companies.
Question 3
Explore the ATO’s website, visiting the sections for business, non-profit organisations
and superannuation.
a) What are the due dates for lodging and paying an organisation’s business activity
statement (BAS) online?
Due date for monthly BAS is 21st day of the month following the end of taxable period.
For example; monthly BAS have a due date 21st day following the BAS period.
Due date for quarterly BAS is 28th day following the respective BAS period. If you’re using
services of BAS or Tax Agent, you will be entitles extension to due date of 25th day two
months following BAS period.
b) What are the due dates for an organisation’s lodgement of their income tax
return?
All organisation lodgement for their income tax should be done by the end of July
Question 4
a) What three budgets and budgeted statements should an organisation’s matter
budget include to ensure effective decision-making and probity and to meet
statutory and legislative requirements?
Question 5
a) What is the formula to calculate an organisation’s net cash position?
The net cash formula is cash minus the liabilities. It is often used in business much like the
current ratio. It determines a company's ability to pay off its obligations. You can also use
it to determine the amount of cash remaining after different transactions
b) During the budget development processes, when are qualitative methods more
commonly used?
d) In preparing the expenses budget, should the variable costs be excluded? Why or
why not?
Question 6
Explain in one paragraph, why it is essential that budgets are clearly explained to all staff,
and why managers must use active listening techniques to do so.
Budget must be set by staff members with accurate and updated information. Thus, it is
important to explain it to the staff about budget to prevent staff went over budgeting
which caused more expenses to be made. Managers should be actively listening so that
he/she could deliver the draft budget to higher management and could also give a
feedback to staff if any changes of budget need to be made.
Question 7
a) Conduct research on ‘due diligence’. Explain the difference between supplier due
diligence and customer due diligence.
Supplier due diligence involves carrying out some research into prospective supplier
before agreeing in transaction or contract while customer due diligence involves facts
information about customer that enable organisation to assess which customer exposes
to range of risks, include money laundering and terrorist financing.
Due diligence in procurement is basically managing risks in your supply chain and process
of independently verifying a supplier capability to delivery fully against their contract,
usually done at final stage of negotiation. By checking that your supplier calim to be,
financially sound, capacity, capability to deliver, systems and process to deliver and
strong understanding of contract deliverables and requirements under the contract.
Question 8
a) What measures might you implement if your analysis of the payables ageing
summary identified that the organisation is consistently late in paying bills?
By having Account Payable Aging Report to have lists account payable in chronological
order and generally group accounts that are less than 30 days old, 30-60 days old and 90
days old. It includes vendor name, purchase details, purchase date, payment due and
other payment terms.
Report of finances
Question 9
a) According to the ‘AASB Standard 101 Presentation of Financial Statements’, what
is the purpose of a supporting note?
It is the standard which sets out a number of key principles around disclosure, all of
which are intended to assist a user of a set of financial statements in understanding the
performance of that entity. The purpose is to ensure comparability both with the entity
financial reports of previous periods with financial reports of other entities.
Australian Reporting Dictionary is a resource to assist users when receiving data from the
ABR. It contains data field group, field names, business descriptions and bulk data
specification. The Australian Business Register (ABR) is a resource to assist users when
receiving date from ABR.
Question 10
In one paragraph explain the importance of reviewing and improving internal financial
controls
Reviewing and Improving internal financial controls help to guard organization from
financial loss. It also could assist in maintaining reliable financial reporting and effective
operations. Improving the process will help to achieve great efficiencies and become
more effective in each organization.