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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 XXXXXXXXXXNational Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P XXXXXXXXXXF XXXXXXXXXX
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P XXXXXXXXXXF XXXXXXXXXX
BSBFIM601 Assessment 1 v2.1 XXXXXXXXXXPage 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?
) 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
ecording 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 $ XXXXXXXXXX
Compact
smart
phone
wallet
$29.00 $17.00 $99.00 $ XXXXXXXXXX
) 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?
) What are the due dates for an organization’s lodgment of their income tax return?
Crown Institute of Business and Technology Pty Ltd ABN XXXXXXXXXXNational Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P XXXXXXXXXXF XXXXXXXXXX
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P XXXXXXXXXXF XXXXXXXXXX
BSBFIM601 Assessment 1 v2.1 XXXXXXXXXXPage 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?
) 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?
) 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.
) 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 XXXXXXXXXXNational Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P XXXXXXXXXXF XXXXXXXXXX
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P XXXXXXXXXXF XXXXXXXXXX
BSBFIM601 Assessment 1 v2.1 XXXXXXXXXXPage 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?
) Access the Standard Business Reporting website at: www.s
.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 XXXXXXXXXXNational Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Capmpus: 116 Pacific Highway North Sydney NSW 2060 P XXXXXXXXXXF XXXXXXXXXX
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 P XXXXXXXXXXF XXXXXXXXXX
BSBFIM601 Assessment 2 V2.1 XXXXXXXXXXPage 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.
) 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
eakeven 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.
) 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
eviewing the statements of an organization that you do not cu
ently 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/te
itory tax?
Crown Institute of Business and Technology Pty Ltd ABN 86
Answered Same Day May 18, 2020 BSBFIM601 Training.Gov.Au

Solution

Pulkit answered on May 23 2020
133 Votes
ASSESSMENT TASK 1)
(QUESTION 1)
a) CONSERVATISM, also known as “PRUDENCE” principle is the concept in which all the expenses & liabilities are recognized as soon as the uncertainty arises, but to recognize Incomes & Assets only when there is reasonable certainty of them being realized.
The main purpose behind it is that sometimes there is a situation that the business may face two reasonable possibilities for recording any transaction, so to be on safer side companies usually follow conservatism, so that the profit does not get overestimated.
This would mislead the shareholders of the company.
Also to check the Going Concern assumption of a company it is necessary to go by Conservatism. As per AASB Standard on inventory, valuation is done on Lower of COST and NET REALISABLE VALUE, this is due to Conservatism.
) As per AASB Standard - 15, if any other standard specify how to recognize revenue then follow that standard otherwise go as per AASB-15. For recognizing revenue an entity shall assure that the entire “risk and rewards” incidental to goods and services has been transfe
ed to the ultimate customer, means control of goods and services has been transfe
ed to the customer and the other requirement of recognizing revenue is that the seller has received it’s consideration or is probable that it will be received.
c) As per AASB-101, Financial Statements comprises of these 4 statements:
· Statement of Profit or Loss & Other Comprehensive Income
· Balance Sheet
· Statement of Changes in Equity
· Statement of Cash Flows
d) Features of Off-the-shelf accounting software is that:-
    OFF SHELF ACCOUNTING SOFTWARE
    ACCOUNTING SOFTWARE PRODUCTS
    · It caters the needs of wide range of customers.
    · These software have robust reporting
& analysis capabilities.
    · It has standard design & Framework
    · Graphs in the software is a powerful
tool which numbers cannot convey.
    · Price is cheaper in comparison with
other accounting softwares.
    · Automation of financial
transactions, reduces efforts of management and they can focus on other
important aspects.
    · Many tutorials are there that is useful
for small scale buyers.
    · Interoperability is maintained as
data entered in the accounting software
can be used by HR, sales, & other
usiness sectors.
    · Updates takes place regularly & it takes
Advantages of new technologies.
    · Business will grow in scope as well as
size and become more prosperous in
future by the use of these softwares.
    · Many trial versions are available, so
the user can try them before investing in it.
    · Data remains secure and there is less chances of theft, misuse, etc.
(QUESTION 2)
a)
    PRODUCT
    COGS/ unit
    Fixed Costs
unit
    Selling Price/ unit
    Gross Profit/unit
    Units Sold
    Revenue
(NOTE – 1)
    Gross Profit Margin (NOTE – 2)
    Net Profit Margin (NOTE – 3)
    Front Pocket Wallet
    $27
    $16
    $89
    $62
    40
    $3560
    69.66%
    51.69%
    Compact Smart phone Wallet
    $29
    $17
    $99
    $70
    37
    $3633
    70.71%
    53.54%
NOTES:
1) Revenue = Selling Price * Units sold
Revenue (front pocket wallet) = $89 * 40 = $3560
Revenue (smart phone wallet) = $99 * 37 = $3663
2) Gross Profit Margin = (Total Revenue – COGS)/ Total Revenue
COGS (front pocket wallet) = $27 * 40
COGS (smart phone wallet) = $29 * 37
GP Margin (front pocket wallet) = (3560 - 1080)/3560 = 69.66%
GP Margin (smart phone wallet) = (3633 -...
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