Save your work with the filename <StudentID – Sunil – Manage Finances>, answer your assessment questions in this sheet below and upload the assessment once it has been completed.
ASSESSMENT SUBMISSION FORM
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Student Number Student Name Email Course Title Unit Code and Title Assessment Task No. / Title ☐ 1. Unit Knowledge Assessment (UKA)
☐ 2. Unit Skills Assessment (USA)
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810895-1905000Student ID: Student Name: Date:
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All knowledge assessments are untimed and are conducted as open book (this means student can refer to textbooks or any resources).
Student may handwrite/use computers to answer the questions.
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Fill out the Assessment Submission form to the documents you are submitting to be marked.
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The Trainer/Assessor may further prompt and question in order to receive answers of appropriate quality or if further clarification is required and to validate authenticity of your submitted work.
UNIT ASSESSMENT PART 1
Q1
Financial probity is the process of ensuring full accountability when managing funds whether in transaction activities or financial advisory services. The requirements for financial probity include ethical acts and code of conduct according to APS values and code of conduct, financial records such as financial reports, cashbook records, banking records, registration certificates, contracts and agreements and reviews of entitlement for tax concession. Financial probity protects the organization from legal and financial risks. It also builds trust with industry through commercial engagement.
Q2.
Accounting Entity Concept is the identification of the activity to which accounting occurs and the connection between the entity and other external parties.
Reliability principle is an accounting method that only allows recording of transactions that have verifiable proof such as a receipt or invoices and characterized by faithful representation.
Going concern principle is a concept that assumes that a company will continue operating in the unforeseeable future without an intention to liquidate the business.
Full disclosure principle is a concept that requires a business to disclose all financial information to an accustomed reader required to interpret the financial information.
Q3.
Transaction recording is an accounting process that entails keeping records of transactions that occurs in a business. The documents for recoding transactions are the source documents such as journals.
Reconciliation Process involves the steps followed in the comparison of financial records against monthly statements to ensure that the money that leaves the account is the actual expenses amount.
Invoicing is a process of recording transactions including products, amount of product purchased and the costs. It specifies the terms of the transaction and payment mode.
Cash flow management is a process by which a business controls the inflows and outflows of a business by monitoring cash receipts and payments.
Q4.
Competition and consumer act 2010 an Australian administered act aiming at proving a fair business environment as well as a competitive surrounding. It covers the relationship between various stakeholders in the industry such as suppliers, wholesalers, retailers, and consumers. It provides protection to consumers and promotes trading activities between organizations.
Privacy Act 1988 was introduced to promote and protect the privacy of individuals involved in the business activities. It governs the way business management and handle the personal information of individuals such as the employees. The act adds credibility and viability to an organization as it makes consumers and employees trust the business with their information.
National Employment Standards under the Fair Work Act 2009 are the terms and conditions of employment that applies in the national workplace relations system. It addresses employee working hours, leaves, notice of termination and public holidays. It protects the rights of employees in an organization by stipulating the required practices in matter affecting employees.
World Trade Organization deals with creation of rules of trade between nations to ensure that trade flows smoothly and predictably. It functions under ten components including stimulating growth and employment, cut living costs, support peace and stability, support health and environment, reduce cost of trading internationally and settle disputes, reduce trade tensions and help countries develop.
Q5.
Goods and service tax is a value added levy on goods and services being transacted within a country. These are the goods for domestic consumption.
Company tax is a rate of income charged on companies for ongoing operations.
Pay as you go withholding is whereby employers withhold a art of their employees payments after paying salaries. The withheld amounts are then sent to the tax office. The system helps the payees fulfill their obligation of liabilities.
UNIT ASSESSMENT PART 2
Part 1
Task 1
Question a
The review shows that NR, NBH, and NCC made profits Q1 of $974,770, $250,000, and $221,660, respectively. However, NCC made a loss of $7,590 while NR and NBH making a profit of $784,030 and $223,50, respectively, in Q2. The group made a loss in two areas for Q3 for NBH and NCC recording $36,379 and $115,404 consecutively. NR profit improved in Q3 ($887,240) as compared to Q2, but Q1 remains an all-time high.
Question b
The impressive results in first because of the high occupancy rate for the three areas (NR-78%, NBH-68%, and NCC-20%). However, the three branches recorded a decrease in occupancy rate in Q2, which led to dropping in profit for NR (72%) and NBH (58%). NCC made a loss since its occupancy rate dropped 5%. NBH and NCC recorded a further drop in occupancy to 56% and 12%, respectively, for Q3 and thus a drastic increase in loss. However, NR recorded an increase in occupancy rate by 4% in Q3. It led to an improvement in its profitability as compared to Q2.
Question c
The revenue has consistently reduced for two areas (NCC and NBH) for the three quarters because of a reduction in occupancy rate. However, NR has recorded an inconsistent revenue trend, a drop in Q2, and an increase in Q3, with Q1 being the highest. On the other hand, the variable expenses recorded a consistent drop for all areas in the three quarters. However, the drop in revenue reduced group revenue despite a reduction in overall variable expenses for the three periods.
Question d
The Nara Group operates in the service industry and thus liable to Goods and Service Tax (GST). Therefore, the company is required to collect GST from consumers and send it to the Australian Taxation Office with a summary of business activity for GST liabilities and credit. Nara group will record tax liability of 10% for all its revenue.
Question e
To: executiveteam@naragroup.com.au
From: reviewer@gmail.com
Dear John Wayne,
I hope this email finds you and the Nara Group team in good health. I had a great time reviewing the company’s budget for three quarters of 2018. I have few areas for recommendation to ensure that the company achieves the targets for the financial year.
First, the company should increase its promotional and sponsorship activities during Q1 at initial dates to ensure that consumer awareness is achieved early. The promotion should remain active for the entire period regularly. However, the sponsorship should remain minimal and conducted at the end of each quarter to avoid an increase in expenses.
Thank you so much for the opportunity to provide my review input for your 2018 budget.
Kind regards,
M.K Taylor
Question f
Xero
The software charges $9 per month, which includes 5 invoices, 5 bills, and reconciliation of 20 bank transactions. However, the company can purchase a $30 plan per month, which offers unlimited bills, invoices, bank reconciliation, and employee payroll service. Xero is highly interactive, which allows individuals with minimal accounting knowledge to operates. The software cloud-based with the ability to link various departments to operates from a diverse location. Also, the software offers a variety of reports which increase user benefits such as accurate interpretation and understandability of financial statements. The software allows users to integrate their systems, which saves time.
QuickBooks
The QuickBooks has offline and cloud-based software, which allows users to choose the preferred mode. However, the company has stopped updating the offline version and shift to the cloud-based app. The software costs $35 with payroll add-on and charges $4 per employee as an additional cost. The system requires the user to post point of sale transaction to accounting software at the end of business or periodically.
FreshBooks
The software costs $10 for each user adds and allows an unlimited number of invoices and bills. The software allows online payments, track expenses, and time. Also, the software automatically synchronizes with a bank account to reconcile the entries. However, the software requires small businesses because of its capability and cost of increasing users.
Recommendation
The analysis shows that Xero is the best software for the Nara Group since it operates various departments. The cloud system allows the departments to operate separately from different geographical regions. Also, the company spends $30 per month and accesses all important functionalities. The other software charges more as the company increases add-ons.
Part 2
Question a
Revenue and Variable Cost
Fixed Cost
Question b
According to the sponsorship policy, Nara Group allows a maximum of $30,000 for sponsorship for each department. Therefore, NBH and NCC should spend $30,000 each for the sponsorship. Also, account $2,000 as a promotional material expense to increase the spending limit for the function.
Question c
Question d
