Assessment Task
– Portfolio of Evidence
FNSACC414_AT1_PE_TQM_V1.3
FNSACC414_AT1_PE_TQOL_V1.3
Student Name
Student Numbe
Unit Code/s & Name/s
FNSACC414 Prepare financial statements for non-reporting entities
Assessment Name
Assessment 1
Assessment Task No.
1 of 2
Assessment Due Date
As per due dates in Connect
Date submitted
Assessor Name
Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
Student Signature
Date
Instructions to Student
This task requires you to answer the questions within this task, and submit additional answers within Microsoft Excel. Use the space provided in this assessment paper for your written answers using a font no smaller than 11 points.
Students are to complete this task in their own time, no time restrictions, and are allowed full access to notes and learning resources.
Materials to be supplied:
· Assessment Task
· Microsoft Excel template FNSACC414_AT1_TMP_TQM_v1
· Learning resources
Information / Materials to be provided by the student:
· Computer and word processing software
· Internet access and ability to access and navigate Connect
Work, Health and Safety:
· follow TAFE Queensland Student Rules
· access TAFE Queensland Student Services for any additional support
· conduct risk assessments prior to any assessment task to ensure the safety of all participants and the environment
· ensure an ergonomically safe work environment to complete all assessment tasks
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard:
Explain and demonstrate understanding of key accounting conventions and legislation, particularly relating to non-reporting entities
Calculate and analyse financial ratios, including liquidity, profitability and activity ratios
Develop cash flow statement in accordance with AASB107
Number of Attempts:
You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will a
ange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules.
Submission details
(if relevant)
Insert your details on page 1 and sign the Student Declaration. Include this form with your submission, along with your marking criteria sheet (with personal details completed).
Due Dates: Refer to Unit Study Guide
TAFE Queensland Learning Management System: Connect url: https:
connect.tafeqld.edu.au/d2l/login
Username; 9 digit student numbe
For Password: Reset password go to https:
passwordreset.tafeqld.edu.au/default.aspx
Instructions to Assesso
This assignment is written based on prescribed text and additional online research.
· Students to complete all requirements listed in this assessment.
· This is an unsupervised written assessment.
· Assessment documents to be uploaded to Connect for marking.
· This is an untimed assessment.
· Students are allowed access to any notes, workbooks and the internet to complete the assessment.
· Students must complete their assessments as individuals
· Usual office WHS requirements should be met by students
· Physical conditions are at the students’ discretion
· Interactions with team members or supervisors should be limited to general instructions and clarification or explanation of the assessment requirements.
· Contingencies if conditions cannot be met are at the discretion of the Assessor.
· Please refer to marking guide to ensure consistency, validity and fairness of student outcomes.
Note to Student
An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide.
Part A
1. Classify the following as Asset, liability, revenue, expenses or owners’ equity.
Motor Vehicle
Accounts Payable
Capital
Sales
Interest Received
Depreciation
Wages
Cash at Bank
Bank Loan
Rent Received
Drawings
Office Equipment
Accounts Receivable
Rent Paid
Land
Credit Card
Bank Fees
Interest Paid
2. List 3 Financial statements that business entities use on a regular basis. For each statement, explain at least 2 advantages and at least 2 disadvantages of using the statement.
3. What purpose do financial statements have for the following users:
a) Managers / Business Owners
) Suppliers
c) Investors
d) Government Regulators/Agencies
4. Name the Governing body that issues Accounting Standards
5. With reference to Statement of Accounting Concepts (SAC) 1 and the Corporations Act 2001
a) Define a Reporting Entity and contrast it to a Non-Reporting Entity
) Explain the reporting requirements of each type of entity.
6. Identify 2 key pieces of legislation affecting taxable transactions and summarise the key features of both pieces of legislation. For each piece of legislation, please provide at least 4 features.
Part B
You are the bookkeeper for Delizio’s Delicatessen. Your employer has asked you to prepare a range of financial ratios to help the management team understand the financial progress of the business.
In the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 you have been provided with comparative Profit and Loss and Balance Sheet figures for the 2018, 2019 and 2020 financial years.
You are required to:
1. Complete the Ratio Calculation Sheet on the Part B tab. In the “Calculation Used” column, write the formula to be used for each ratio.
2. Calculate the ratios listed on the sheet for the 2019 and 2020 financial years and record them on the sheet. Include all your workings for each ratio; and record all answers to 2 decimal places.
3. Comment on what the ratios indicate about the operation of the business, the cu
ent position of the business of the future prospects. Identify any areas of concern.
4. Go to the Australian Tax Office’s Small Business benchmark website https:
www.ato.gov.au/Business/Small-business-benchmarks/In-detail/Benchmarks-by-industry/
Find the benchmark figures for a Delicatessen for XXXXXXXXXXfinancial year and note down the following figures for a business with a turnover equivalent to Delizio’s:
· Average Cost of Sales
· Average total expenses
a) Gross Profit ratio
i) Calculate the benchmark Gross Profit ratio using the calculation:
100% – Average Cost of Sales
__________________________________________________________________________
ii) Compare the benchmark Gross Profit ratio calculated in i) to Delizio’s Gross Profit ratio previously calculated on your spreadsheet. Comment on Delizio’s performance compared to the industry standard (benchmark Gross Profit ratio).
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__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
) Net Profit ratio
i) Calculate the Benchmark Net Profit ratio using the calculation:
100% – Average total expense
__________________________________________________________________________
ii) Compare the benchmark Net Profit ratio calculated in i) to Delizio’s Net Profit ratio previously calculated on your spreadsheet. Comment on Delizio’s performance compared to the industry standard (benchmark Net Profit ratio).
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
5. Explain the advantages and disadvantages (minimum of three) of using ratios and comparison techniques to analyse financial data. Please record your answer below.
Part C
In the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 you have been provided with a summary of transactions for Henry & Henry for the year ended 30 June XXXXXXXXXXHenry & Henry are a partnership providing legal services in South-East Queensland.
It is organisational policy of Henry & Henry that they produce annual cash flow statements in accordance with AASB 107 Statement of Cash Flows. This enables Henry & Henry to demonstrate (to their external stakeholders) their ability to meet their cash flow requirements.
(Complete Ch.2 of the text before attempting this question).
IGNORE GST FOR THIS QUESTION.
You are required to:
1. Reconstruct the Account Receivable General Ledger Account and the Accounts Payable General Ledger Account. The Bank figures calculated in these reconstructions will be needed for Step 2.
2. Prepare a Cash Flow Statement for the year ended 30 June 2021 in a form consistent with AASB 107.
3. Prepare a Reconciliation of Net Profit with Net Cash Flows from Operating Activities.
Complete both of these tasks within the Microsoft excel file FNSACC414_AT1_TMP_TQM_V1 on the Part C tab. Use Excel formulae to link cells and calculate totals and subtotals, where appropriate.
123 TMP C – Assessment Template – Portfolio of Evidence v1.3 Page 1 of 7
123 TMP C – Assessment Template - Portfolio of Evidence v1.3 Page 7 of 7
Part B
Delizio's Delicatessen Delizio's Delicatessen
Profit & Loss Statement 2018 2019 2020 Balance Sheet 2018 2019 2020
Sales 3,945,000 4,561,230 4,789,500 Cu
ent Assets
Less cost of goods sold 2,643,000 3,040,250 3,192,500 Accounts receivable 45,300 52,100 71,000
Gross Profit 1,302,000 1,520,980 1,597,000 Inventory 186,500 214,000 263,200
Less Expenses Cash 8,000 5,800 1,200
Selling expenses 792,600 1,003,000 1,101,920 Total cu
ent assets 239,800 271,900 335,400
Administration expenses 37,000 37,500 38,000 Non-Cu
ent Assets
Financial expenses 115,000 113,000 111,000 Land and buildings 175,000 211,000 211,000
Total expenses 944,600 1,153,500 1,250,920 Shop equipment 123,000 135,000 190,000
Net Profit / (Loss) 357,400 367,480 346,080 Motor vehicles 42,000 44,000 39,000
Total non-cu
ent assets 340,000 390,000 440,000
Total Assets 579,800 661,900 775,400
Cu
ent Liabilities
Accounts payable 204,300 252,650 331,300
Bank overdraft - 0 - 0 56,020
Total cu
ent liabilities 204,300 252,650 387,320
Non-Cu
ent Liabilities
Mortgage 84,000 81,000 79,000
Bank Loan 17,000 73,000 120,000
Total non-cu
ent liabilities 101,000 154,000 199,000
Total Liabilities 305,300 406,650 586,320
Net Assets 274,500 255,250 189,080
Equity
Capital 299,600 274,770 256,200
Add Net Profit 357,400 367,480 346,080
Less Drawings - 382,500 - 387,000 - 413,200
Total Equity 274,500 255,250 189,080
Ratio Calculation Worksheet
Ratios Calculation Used 2019 2020 Comment
Liquidity (express as a ratio)
Cu
ent ratio
Quick ratio
Profitability (express as a percentage)
Gross profit rate
Net profit rate
Activity
Average inventory No comment required
Inventory turnover rate
Number of days inventory held No comment required
Part C
The following summary of transactions of Henry & Henry is provided for the year ended 30 June 2021
Credit sales of legal services 252,000
Credit purchases 191,000
Cash sales of legal services 293,000
Cash purchases 138,000
Discounts allowed 3,000
Discounts received 3,000
Accounts receivable balance 01/07/20 50,400
Accounts receivable balance 30/06/21 61,400
Accounts payable balance 01/07/20 35,850
Accounts payable balance 30/06/21 40,850
Bad debts written off 2,000
Increase in allowance for Doubtful Debts 2,000
Repayment of bank loan 18,000
Drawings by Partners 15,000
Purchase of new Fittings 25,000
Alterations to buildings 4,000
Depreciation of plant 34,000
Cash expenses paid 105,000
Net profit for the year 73,000
Cash at bank 01/07/20 75,000
Cash at bank 30/6/21 116,000
Assessment Marking Criteria
FNSACC414_AT1_MC_TQM_v1.4
FNSACC414_AT1_MC_TQM_v1.4
Student Name
Student Numbe
Unit Code/s & Name/s
FNSACC414 Prepare financial statements for non-reporting entities
Cluster Name
If applicable
NA
Assessment Type
☐ Assignment ☐ Project ☐ Case Study ☒ Portfolio
☐ Third Party Report (Workplace) ☐ Third Party Report (Peer) ☐ Other
Assessment Name
Assessment 1
Assessment Task No.
1 of 2
Assessment Due Date
Date Submitted
/
Assessor Feedback:
Attempt 1
Satisfactory ☐
Unsatisfactory ☐
Date
/
Assessor Name
Assessor Signature
☐ Student provided with feedback and reassessment a
angements (check box when completed)
Date scheduled for reassessment
/
Attempt 2
Satisfactory ☐
Unsatisfactory ☐
Date
/
Assessor Name
Assessor Signature
Note to Assessor: Please record below any reasonable adjustment that has occu
ed during this assessment e.g. written assessment given orally.
Assessment Criteria / Benchmarks
The evidence submitted demonstrates that the student has satisfactorily:
Attempt 1
Attempt 2
Date
__/__/__
Date
__/__/__
Y
N
Y
N
Part A
1. Recorded accounts in the co
ect account class
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2. Listed, and explained advantages / disadvantages of 3 financial statements
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3. Explained purpose of financial statements for
a. Managers / Business owners
. Suppliers
c. Investors
d. Government Regulators
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4. Named the governing body that issues Accounting Standards
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5. Defined a reporting entity and non reporting entity; explained the reporting requirements of each
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6. Identified 2 key pieces of legislation affecting taxable transactions and summarised the key features of each
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Part B
1. Identified the formula to be used for each calculation
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2. Calculated the ratios for 2019 and 2020, to 2 decimal places. Workings should be included
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3. Comment on / analyse each ratio
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4. Identify the small business benchmark and compare to Delizio Delicatessen
a. Gross profit ratio
. Net profit ratio
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5. Explain the advantages and disadvantages of using ratios and comparison techniques
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Part C
1. Reconstruct Accounts Receivable and Accounts Payable General Ledger account.
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2. Prepared a cash flow statement consistent with AASB107
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3. Prepared a reconciliation of Net Profit with Net Cash Flow from Operating Activities
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4. Use appropriate functions in Microsoft Excel. For example: cell referencing and totalling.
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123 TMP H – Assessment Marking Criteria v1.8 (04/11/2020) Page 1 of 3
123 TMP H – Assessment Marking Criteria v1.8 (04/11/2020) Page 3 of 3