1

What form should be used to identify clients expectations and objectives? Discuss in 50 to 80
words.

The form shoulb be used is Client Information Form for record all the detail of any customers for
example : Name , Business Title , Specific purpose of the contact , Type of business , Clients
objectives, size of business and Current Financial information we can used all of this detail to
generate categories of customer

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What step should the financial manager perform to confirm the clients expectations and objectives?
Discuss in 80 to 100 words.

The next step of financial manager should be do is practice to perform a brief review of the available
reports this objectives is contact the staff and ask the questions in regard to preparation and inputs
used including identified categories of transaction contained in ambiguous accounts.

Futhermore,the advisor may assist the client to complete the form when required. For instance
shows the client information for Robert Smith who runs a building business that employs four
staff.The current financial information used for management is described in the final row.This is
information produced by an internal accounting package by the part-time admin-staff.

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3
What is the main financial information required when providing information to shareholders?
Discuss in 50 to 80 words.

In my view, the main financial information to shows to shareholders should be the financial
statement involve balance sheet statement shows about wealth of company, profit and loss
statement will shows about operating management in the company for this year also and cash flow
statement will shows about operating cycle of this company about cash in flow and cash out flow.

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What advice should be given to clients who are seeking improved investment returns? Discuss in 50
to 80 words.

In my view, we will advice about operating cycle in the company in other cases the client may
require an entire reporting service.This can mean that all transactions need to collected and sent
along with their bank statements to the financial manager.They are entered by the financial
manager who then completes financial reports and the specific reports requested about request the
loan from bank.

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How can you ascertain the clients legal and financial needs? Discuss in 30 to 50 words.

You have to perform a brief review of the available reports.This allows the financial manager to
contact the staff and ask questions in regard to report preparation and inputs used can include
asking explanations about missing heading s and identifying the categories of transactions contained
in ambiguous accounts.Moreover, The advisor may assist the client to complete the form when
required.
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What are the tax implications of setting the correct legal structure for a business? Discuss in 30 to 50
words.

In my view the tax implications of setting the correct legal structure for a business are calculated and
paid tax base on taxable income by identifiy the client's tax requirement will start by examining the
CIF.Moreover,When business generates large income then a more complicated structure can be
recommended includes businesses whose owners are being taxed at the top marginal rate.

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Business financial statements need to be reconciled to meet the requirements of the tax system.
This generally means that depreciation claimed on assets is reconciled so that expenses may be
reduced for the current period. What effect does this have? Discuss in 50 to 80 words.

The effect is the timing in which the depreciation is allowed if you use straight-line method.This
means that some companies will initially want to depreciate assets at a higher rate than the tax
system allows.This leads to deferred tax asset for depreciation which the company will claim against
it's tax or pay capital gains tax on if the asset is sold early.

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4

The depreciation reported on the financial statements needs to be reconciled. What is the effect of
this on tax in future periods? Discuss in 50 to 80 words.

ABC Ltd

Depreciation Reconciliation Statement

Year ended 30/6/20xx

Depreciation Per Financials

350,000

Less

Depreciation allowable per tax legislation

250,000
Equals

Differed depreciation amount

100,000

As a result above of claiming accelerated depreciation on the new scanning system,some of the
depreciation will be carried forward until future tax years.

This results in depreciation expense of 250,000 being allowed per tax legislation this financial year
and 100,000 being carried forward as a deferred tax asset until next year when it is expected to be
claimed.

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What is cash flow efficiency? Discuss in 30 to 50 words.

The ability of a company to generate cash from continuing operations. Three ratios measure a
companys cash-generating efficiency: cash-flow yield, cash flows to sales, and cash flows to assets

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2
Who should be consulted when setting working capital levels and for what reason? Discuss in 50 to
80 words.

In my view, we have to be consulted Accounting department to setting working capital levels

because we should to know how much all the account receivable we have and how to generates
cash flow relative to other periods and to other entities.This involves comparing cash flow statement
of the business with the financial statements of competitors.

This mean identifying a suitable annual capital level.This is the amount that a business requires to
operate effectively .This includes enough capital to trade and is covered in the cash flow budget.

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What is the main reason for setting a correct level of working capital? Discuss in 50 to 80 words.

In my view,the main reason for setting a correct level of working capital affect to company
effectively and involve planning an annual sales forecast and setting the working capital
based.Furthermore,the one thing is the budget have to prepare in the year-to-year so it mean the
working capital can ordered and recived in order to make a sales and when a working capital falls
below the targeted level there needs to be a system in place where it is replenished .This can involve
training and authorising staff to reorder inventory when levels are low.

Activity 4

It is the 1st of July and you are asked to prepare the future value calculation table for your client XYZ
based on the information supplied on the project:

Expected annual cash flow $15,000.

Project life 10 years.

Year

Present value of $1 at 9%

0.9174

0.8417

0.7722
4

0.7084

0.6499

0.5963

0.5470

0.5019

9
0.4604

10

0.4224

Amount expected to be recovered from the project in the final year $7,000.

Cost of project $100,000.

Activity 5

How should financial managers avoid ambiguity? Discuss in 50 to 80 words.

In my view, we have to report the financial statement clearly and just telling others what to do and
how to do it. By this, an effective manager is takes responsibility for ensuring that each individual
within his department succeeds so that the team or business unit achieves results. This is because
they understand the goals and objectives of the company. So they fully understand their
responsibilities, duties and expectations of their company.Moreover,the financial manager will
possess the knowledge to answer any questions or concerns from those who report to them.
Towards it, successful managers required both talents and skills.

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Prepare a mock financial plan extract that summarises the scope of the clients objectives. (Half a
page)
Attach file already.

Activity 6

What is important when greeting clients? Discuss in 30 to 50 words.

It seems like common sense that businesses should expect employees to pay great attention to how
they greet customers. A courteous greeting is an excellent way to make a positive first impression on
a customer, and there is the risk that a customer will not make a purchase in the absence of a proper
greeting.

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What is rapport? Discuss in 30 to 50 words.

Rapport is the level of connection sheared between the financial manager and the clients .Rapport
can be established through verbal and non-verbal communication.by having things in common, this
makes the communication process easier and usually more effective.

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What non-verbal communication is used to establish rapport? Discuss in 30 to 50 words.

The non-verbal communication is appropriate to establish rapport are body language is used; we
read and instantly believe what body language tells us, whereas we may take more persuading with
vocal communication. If there is a mismatch between what we are saying verbally and what our
body language is saying then the person we are communicating with will believe the body language.
Building rapport, therefore, begins with displaying appropriate body language - being welcoming,
relaxed and open for example eye contact ,Hand and head movement.

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How should the financial manager deal with complaints where the client is wrong? Discuss in 30 to
50 words.

The financial manager should be deal with the client when clients communication their
dissatisfaction with the provision of financial and business information.In case the client may be
wrong for financial statement it is pragmatic to let the client express their point of view and politely
offer feedback.

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When the client has a valid concern what should the financial manager do? Discuss in 50 to 80
words.
The financial manager should identified and express the information to client with the provision of
financial and business information.In case the client may be wrong for financial statement it is
pragmatic to let the client express their point of view and politely offer feedback.

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What type of feedback do complaints provide? Discuss in 30 to 50 words.

Formal Feedback because The formal feedback should be provide for the client about the nature and
quality of the services The manager may ask the client to complete annual feedback
forms.Moreover,The financial manager should be prepare and written and that report have to easily
understood resulting.

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What can complaints lead to? Discuss in 50 to 80 words.

The complaint from customer lead to improve product and service in the future and this is a
opportunities for the financial manager to plan and deal with other department to apply and
improve our service.Moreover,the financial manager should use some file notes to record both
formal and informal notes describing feedback from the client.The notes can be used to det up new
formals for presenting business performance information.

Activity 7

What is accuracy of advice? Discuss in 30 to 50 words.

In my opinion, accuracy of advice it will mean the data or information has to be
correct,reliability,verify data under regulation and authorize by appropriate authorities for instance
Financial Officer and Chief executive officer.Moreover,the data has to sign for the annual financial
reports and that report should be prepare for stakeholders ,banks,member,private
shareholders,regulatory groups,funding bodies and other interested parties.

What is accurate advice based on? Discuss in 30 to 50 words.

In my opinion,accuracy of advice based on real transactions and data sent to the financial manager
in line with the directions of the financial plan.The data in question will relate to the goal of the
financial plan and it will include a question concerning the GST credits of an invoice paid.

List and discuss (50 to 80 words each) five factors to consider when preparing advice.

1.Verifying data : Verifying data is checking it to see that it is based on real transactions.The FO
normally keep all transaction data in a central filling area.When the financial manager contacts the
client to question data the FO will normally be responsible for responding .The FO will know where
original documents are kept and should be able to respond to question quickly.

2.Statutory or Obligations: All report should be involve providing financial performance information
of expenditure of funding allocated by government department

3.Organisational policies : A policy will guide to decision-making and reflects the organisations
attempts to achieve its goals. Policies are the framework consistent with the organisations
objectives that help financial managers make decisions.

4.Have to be signature on the annual report

Activity 8

Who is normally the primary contact for the client when verifying financial information? Discuss in
30 to 50 words.

In my opinion,The first person who gonna verifying data is Financial Officer because the FO will
normally keep all transaction data in a central filling area .When the Financial manager contacts the
client to question data the FO will normally be responsible for responding .The FO will know where
know where original documents are kept and should be able to respond to questions quickly.
2

Who should be contacted in the absence of the FO? Discuss in 30 to 50 words.

In my opinion,the person should contactin the absence of the FO should be the Chief Executive
Officer because the CEO can access data to verify the accuracy of the data to the Financial Manager
also.

What are statutory returns and guidelines? Discuss in 30 to 50 words.

Statutory returns are forms required by government regulators and guidelines for their
preparation.The financial manager can trained by experienced staff about how to prepare
returns.This includes training in the preparation of IT and BAS returns.

What is the difference between policies and procedures? Discuss in 50 to 80 words.

Policies

Policies are clear, simple statements of how your organisation intends to conduct its services,
actions or business. They provide a set of guiding principles to help with decision making.Policies
don't need to be long or complicated a couple of sentences may be all you need for each policy
area.

Procedures

Procedures describe how each policy will be put into action in your organisation. Each procedure
should outline:

-Who will do what

-What steps they need to take

-Which forms or documents to use.

-Procedures might just be a few bullet points or instructions. Sometimes they work well as forms,
checklists, instructions or flowcharts.

Policies and their accompanying procedures will vary between workplaces because they reflect the
values, approaches and commitments of a specific organisation and its culture. But they share the
same role in guiding your organisation.

What would cause a financial manager to contact a government department? Discuss in 50 to 80

words.

The cause for financial manager to contact a government department for including;

-Contact the secretary (Government ministers) when changes in legislation are being made.

-Contact for financial management instructions.

-Contact to reporting the expenditure of funding allocated by government departments.

-Contact to nominated staff.

-Contact to comply with legislation,can have the types of regulatory forms required specified in their
financial plan.

-Contact for review the reporting section to ensure that the client is compliant and to update forms
when changes in legislation occur.

Activity 9

What is reconciliation? Discuss in 30 to 50 words.

Reconciliation is accounting for differences in financial reports.Reconciliations occur between

two reports that have different purposes.Reconciliations normally explain report differences
through timing differences.

What normally causes differences in financial reports that require reconciliation? Discuss in 30
to 50 words.

The normally causes differences in financial reports that require reconciliation for instance:
It is common for a difference to exist between amounts shown in tax returns and those on the
statement of financial performance.

Which financial reports can require reconciliations? List and briefly describe five reports.

-Traditional financial statements : The balance of the cash account in an entity's financial
records may require adjusting as well. For instance, a bank may charge a fee for having the
account open. The bank typically withdraws and processes the fees automatically from the
bank account. Therefore, when preparing a bank reconciliation statement, any fees taken from
the account must be accounted for by preparing a journal entry.

-Summaries
The Bank Reconciliation Summary shows how your actual bank balance and the balance of the
bank account in Xero match, after taking into account any unreconciled items. This report is
useful if your bank account's statement balance and balance in Xero do not match, and you
need to check for duplicate or manually created transactions that might cause the discrepancy.

-Income tax returns

The company should complete your annual tax return. If you dont reconcile your bank
statements on a regular basis, it might be that your financial records are inaccurate and you
will report an incorrect figure on your tax return.
 -BAS returns
During reconciliation you can add monthly bank fees to the Cash Book and correct any data
errors. Reconciliation also gives you a system for finding charges that you need to contact your
bank for a correction or dispute. All accounts must be reconciled for the months in a Business
Activity Statement (BAS) period, before the BAS process can be started.

-Bank statement
When the company receives its bank statement, the company should verify that the amounts
on the bank statement are consistent or compatible with the amounts in the company's Cash
account in its general ledger and vice versa. This process of confirming the amounts is referred
to as reconciling the bank statement, bank statement reconciliation, bank reconciliation, or
doing a "bank rec." The benefit of reconciling the bank statement is knowing that the amount
of Cash reported by the company (company's books) is consistent with the amount of cash
shown in the bank's records.

-Account balances
Reconciling an account often means proving or documenting that an account balance is correct.
For example, we reconcile the balance in the general ledger account Cash in Checking to the
balance shown on the bank statement. The objective is to report the correct amount in the
general ledger account Cash in Checking. You will often need to adjust the general ledger
account balance for items appearing on the bank statement that were not entered in the
general ledger account

Use the following information to prepare a bank reconciliation for HIJ company:

Closing account balance 30/6/20xx $55,000

Unpresented cheque total $13,000

Balance shown on bank statement 30/6/20xx $68,000

Attach file already.

Activity 11

What is standard financial analysis? Discuss in 50 to 80 words.

Standard financial analysis is using previous financial statement to identify the performance
and position changes of companies.This can be used to analyse the ongoing performance of a
business or to make comparisons with other businesses.

2
 What is benchmarking? Discuss in 50 to 80 words.

Benchmarking is comparing businesses according to industry standards for specific account

figures.This step is important for comparing similar companies.This could involve comparing a
benchmark for different companies in the same industry on single account items including the
cost of sales account.

Explain how the bond rate can be used for analysing business performance. Discuss in 50 to 80
words.

Commonly used benchmarks are comparing business profit percentage or sales to the current
government bond rate.The bond rate is the amount that is paid to money lent to the
government.When the business is making less returns than the bond rate,then clients need to
be advised that the business needs to improve profit performance.
Bond rate is the yield on long-term Commonwealth bonds.It is a measure for a risk free rate of
return and a benchmark by which the profit of a business can be judged.Note that there are no
real risk free investments.

What is cash flow analysis? Discuss in 30 to 50 words.

Cash flow analysis is comparing cash flows for subsequent periods in a comparative report.This
can mean a spreadsheet that summaries the previous periods cash received and cash
outgoings.This can be used when a business is considering investing in large assets to enhance
production.

When can cash flow analysis be useful? Discuss in 30 to 50 words.

The cash flow useful for a large manufacturing companies.Cash flow analysis involves
budgeting the future savings and forecasting the increased cash flows form purchasing the new
asset.These future amounts of cash are then discounted into todays value to determine which
projects are the most profitable and which are therefore chosen.

What are the conventional reasons for analysing financial statements? Discuss in 50 to 80 words.

The conventional reasons for analyzing financial statements are investor level, ratio analysis
using financial statements can also leave out a number of important aspects of a firm's
success, such as key intangibles, like brand, relationships, skills, and culture. These are
primary drivers of success over the longer term even though they are absent from conventional
financial statements.
Activity 12

What are the three categories of ratios that can be used to analyse a business? Discuss in 30 to
50 words.

The three categories of ratios that can be used to analyse a business

-Financial statements to compare changes in account balances from one period to the next.This
is useful to reveal trends that are occurring in the business.
-The dollar amount of each item reported on an individual financial statement as a percentage
of a specific item on the same statement,referred to as the base amount.
-Subsequent years are compared to analyse the business.This is a useful because it makes the
cash figures on the statements meaningful.This can include highlighting increased or decreases
in key accounts using percentage and ratio analysis.

What types of ratios are used to analyse the ability of an entity to continue operations in the
long term? Discuss in 30 to 50 words.

The types of ratios are used to analyze the ability of an entity to continue operations in the
long term is:
-Debt ratio : to measure of total liabilities as a percentage of total assets.It is used to
determine how financially stable a business is.The debt ratio is calculated by dividing the total
liabilities of a business by itsl total assets for the same financial year.

Use the financial statement extract for ABC limited to calculate its debt ratio.

ABC Limited

Partial Balance Statement

30.6.2012

Current Assets $30,000

Non Current Assets $120,000 $150,000

Current Liabilities $15,000

Non Current Liabilities $70,000 $85,000

Net Assets $65,000

 Total Assets = $150,000
Total Liabilities =$85,000
Debt ratio = 85,000 / 150,000
= 56.67%

What is considered a stable financial stability ratio? Discuss in 30 to 50 words.

The financial stability is about the absence of system-wide episodes in which the financial
system fails to function (crises). It is also about resilience of financial systems to stress.

A stable financial system is capable of efficiently allocating resources, assessing and managing
financial risks, maintaining employment levels close to the economys natural rate, and
eliminating relative price movements of real or financial assets that will affect monetary
stability or employment levels. A financial system is in a range of stability when it dissipates
financial imbalances that arise endogenously or as a result of significant adverse and
unforeseen events. In stability, the system will absorb the shocks primarily via self-corrective
mechanisms, preventing adverse events from having a disruptive effect on the real economy or
on other financial systems. Financial stability is paramount for economic growth, as most
transactions in the real economy are made through the financial system.

The true value of financial stability is best illustrated in its absence, in periods of financial
instability. During these periods, banks are reluctant to finance profitable projects, asset
prices deviate excessively from their intrinsic values, and payments may not arrive on time.
Major instability can lead to bank runs, hyperinflation, or a stock market crash. It can severely
shake confidence in the financial and economic system.

What does a financially stable ratio indicate? Discuss in 30 to 50 words.

Financial stability ratios are tools for gauging ability to meet long-term obligations with
enough working capital left to operate for including
-Debt Ratio
-Equity Ratio
-Gearing Ratio
-Asset turnover ratio
-Return on total asset (ROA)
-Return on Equity (ROE)

How can clients with a high debt ratio be advised to control them? Discuss in 30 to 50 words.
 In my opinion, we have to control liability and convert the net profit to equity. Moreover,the
company should increase capital investment .

Activity 13

When considering business and personal objectives, what should clients files be analysed for?
Discuss in 30 to 50 words.

Business owners should consider writing a business plan and creating a section for objectives.
The business plan can act as a road map to guide the business owner throughout his company:
operational lifetime. Business owners can refer back to the plan and evaluate how well they
have achieved their business objectives. Business plans can also be living documents where
owners constantly update their company: objectives. Setting new objectives can help business
owners stay motivated in their company.

How often should analysis occur? Discuss in 30 to 50 words.

In my opinion, we should analysis normally annual year for summaries all the report to
shareholder,stakeholder and customer.

Describe (80 to 100 words) how different types of information kept on file can be used to
determine if business performance information is consistent with and meeting a clients
business and personal objectives.

In my opinion, the type of effective information security policy, the information produced or
processed during the risk analysis should be categorized according to its sensitivity to loss or
disclosure. Most organizations use some set of information categories, such as Proprietary, For
Internal Use Only, or Organization Sensitive. The categories used in the security policy should
be consistent with any existing categories. Data should be broken into four sensitivity
classifications with separate handling requirements: sensitive, confidential, private, and
public.

How should reports analysing the satisfactory provision of business performance information
with clients personal and business objectives be presented? Discuss in 80 to 100 words.

The report analyzing the satistactory provision of business performance information with
clients personal and business objectives to be presented are net profit ,retain earning because
that will be paid to share holder and it will indicate business performance of our business.
Using established goals as a basis, performance planning sets the stage for the year by
 communicating objectives, and setting an actionable plan to guide the employee to
successfully achieve goals.

Performance planning, as with all other steps, is a collaborative process between the manager
and employee, although there will always be some elements that are non-negotiable. Begin
with the job description and identify major job expectations; expectations then can be
clarified for each major area.

Under each key contribution area, it is important to identify long-term and short-term goals,
along with an action plan around how they will be achieved. Goals can be weighted to identify
priorities. Discuss specific details related to how progress against goals will be evaluated. Next
steps include determining any obstacles that would stand in the way of these goals being
achieved. If an obstacle is knowledge, skills or behaviora plan should be developed to
overcome, i.e.; training, mentoring, etc.

Using the performance planning document as a reference document, the employee and
manager then should regularly monitor progress against goals, problem solve road blocks, re-
assess goals, change goals as business direction changes, and re-evaluate training and resource
needs. This is where the conversation is critical and often where the follow through sometimes
falls down. Performance planning and ongoing performance feedback are critical because they
facilitate continuous improvement and aid open communication.

Who should reports analysing client objectives be prepared for? Discuss in 30 to 50 words.

In my opinion the reports analyzing client objectives be prepared should do by the financial
Officer or The owner because it will show what are we doing in this year and how much we
going to increased profit that will indicate business performance according business objectives.

Activity 14

What is the financial potential of a business? Discuss in 30 to 50 words.

In my opinion , the financial potential of a business will contain can also be used to calculate
financial ratios such as gross profit margin, return on investment and return on owner's equity.
Ratios provide helpful information about a company's liquidity, profitability, debt, operating
performance, cash flow and investment valuation. (Learn more about financial ratios in our
Financial Ratio Tutorial.)

What are clients funding requirements? Discuss in 30 to 50 words.

 In my opinion, the clients' funding requirement should be including ;
-Short term Finance Short-term finance can range from one day to several months to three or
five years.Factors causing short-term finance needs are periodic and unplanned.Lenders who
extend short-term finance usually offer it at variable interest rates.
-The long-term funding requirements of a business are the funds needed to finance its core
business assets such as land, buildings and equipment. Every business has core assets, although
it is not always readily apparent what they are. For example, the core assets of airline
companies at one time were their fleets of aircraft. Now, however, many airlines avoid owning
aircraft, preferring to lease them, and their main core assets have become information
technology systems and landing slots at airports. Some hotel groups have ceased owning the
hotels they manage, and their core assets are the management contracts for hotels that are
owned by third parties.

What are statutory obligations? Discuss in 30 to 50 words.

Statutory Obligations that does not arise from a contractual relationship but is created under
a law.
-health, safety and welfare in the workplace under the Occupational Health & Safety Act 2004
-workers' compensation and the rehabilitation of injured workers under the Accident
Compensation Act 1985 and the Workplace Injury Rehabilitation and Compensation Act 2013
-employer insurance and premium under the Workplace Injury Rehabilitation and
Compensation Act 2013
-explosives and other dangerous goods under the Dangerous Goods Act 1995
-high-risk equipment used in public places and on private premises under the Equipment
(Public Safety) Act 1994.

What is evaluation reporting? Discuss in 30 to 50 words.

Evaluation reporting is considering the financial potential,funding requirements and

obligations of clients. An evaluation report describes the key requirements and obligations for
the business.
The main section of an evaluation report should include a summary of the requirements and
obligations of the business-this should include a compliation level of assurance.Compilation
assurance provides the client with the assurance that the report will be accurate based on the
information provided to the financial manager.

List and briefly describe five sections found in an evaluation report.

 The five section of report should be including;
1.Financial potential : will show an operating surplus for the previous financial statements.
2.Funding requirements
3.Key statutory requirement
4.Summary of the report
5.Name and signature of Financial Manager

Activity 15

What is compliance often linked with? Discuss in 30 to 50 words.

Normally the businesses have a responsibility to properly comply with taxation

legislation.Often compliance issues will be linked in complex with the size and complexity of
the business.It important component of managing of managing business operations is
compliance with legislation.

How often does business have to report GST? Discuss in 30 to 50 words.

It depend on your GST turnover is $20 million or more, you must report and pay GST monthly.

If your GST turnover is less than $20 million - and we have not told you that you must report
monthly - you can report and pay GST quarterly.

If you are voluntarily registered for GST and you have not made an election to pay GST by
instalments, you can choose to report and pay and claim GST credits annually.

What are the consequences of not meeting reporting deadlines? Discuss in 30 to 50 words.

The deadline to submit your online SAT is 11.59 pm (EST), January 31, of each year. If you fail
to meet the deadline your information will be shared with the Quality Assurance Committee.
-You will be required to submit a letter to the Quality Assurance Committee explaining
why you missed the deadline and the committee will review the letter.
-You may be required to pay a fee.
A fee of $50.00 may be charged to a member by the College for reminding a member to do
something that they are required to do but have failed to do

How should clients be advised of reporting dates? Discuss in 30 to 50 words.

The client lists should be kept up to date as we base your overall lodgment performance on the
clients appearing on it.
 The electronic lodgment service (ELS) can be used to:
-add and delete clients
-advise that a client has no obligations to lodge tax returns for specific years or from a specific
year
-obtain reports and client lists.

What are PAYG obligations? Discuss in 30 to 50 words.

The Pay as you go (PAYG) withholding rules, you have an obligation to collect tax from
payments you make to employees and some businesses so they can meet their end-of-year tax
liabilities.

You'll have withholding obligations if any of the following apply:

-you have employees

-you have other workers, such as contractors, and you enter into voluntary agreements to
withhold amounts from -your payments to them
-you make payments to businesses that don't quote their Australian business number (ABN).
-You must apply to register for PAYG withholding before you are first required to withhold an
amount from a payment.

As an employer, you have other legal obligations, aside from tax and super. You must only
employ legal workers that is, Australian citizens, permanent residents and non-citizens with
Australian visas that allow them to work.

What is the main component of PAYG? Discuss in 30 to 50 words.

The main component of PAYG involves regular payments made by employers and other payers,
for example superannuation funds. It is used to collect by instalments income tax, HELP
repayments, Medicare and other payments. PAYG amounts to be withheld are determined
based on the Australian Taxation Office (ATO) PAYG schedules.Discrepancies and deduction
amounts are declared in the annual income tax return and will be part of the refund that
follows after annual assessment or reduce the taxation debt that may be payable after
assessment.

How is PAYG paid? Discuss in 30 to 50 words.

The PAYG paid when a worker leaves or retires

Should an employee cease employment with you, some things you are required:
 Make any final PAYG withholding payments that may be long standing, on the employees
behalf;
Complete an employment termination payment (ETP) form, if applicable;
Send a payment summary to the employee by latest 14 July;
Keep on record the employees TFN declaration till the end of the next financial year;
Keep record of the necessary PAYG withholding.
Should a contractor under a voluntary agreement cease their contract with you, you must then
withhold any final payments at the applicable rate and keep record of the necessary PAYG
withholding.

This is also applicable to businesses that have not quoted their ABN.

When will a business owner be required to pay PAYG on income? Discuss in 30 to 50 words.

As a business owner, you have an obligation under the PAYG withholding rules to collect tax
from the payments you make to employees and certain businesses to ensure that they meet
their end-of-year tax liabilities.

To determine whether or not you have withholding obligation, check if the following applies:

You employ people;

You employ other workers such as contractors and both of you are entered into a voluntary
agreement to withhold amounts from your payments to them;
You make payments to businesses that do not quote their ABN
If this criteria applies to your business you must register for PAYG withholding (if you have not
already) before you are first obliged to withhold a partial amount of a payment.

How is PAYG on income reconciled? Discuss in 30 to 50 words.

In my opinion the PAYG on income reconciled when used to progressively withhold income tax,
the Medicare levy, student HELP loan repayments and sundry other statutory deductions from
salary, compensation and other payments made to employees, contractors or directors and in
respect of certain other payments including where a business has not provided an ABN.

The PAYG withholding amounts to be withheld from these payments are determined by your
payroll accounting system and ATO directives. You need to advise the ATO of the amount that
has been withheld through lodgement of your BAS. It must then be remitted to remit this to
the ATO when periodically submitting your BAS.

10
 What is the benefit for large clients making monthly PAYG instalments on wages paid? Discuss in
30 to 50 words.

Large clients usually report PAYG from wages monthly because this allows the client to spread
the impact on cash flows over several months.This avoids having one large cash outflow for
PAYG on an annual reporting statement.

Activity 16

When should a table be used to present business performance information? Discuss in 30 to 50

words.

We should use a table be used to present business performance information when you would
like to clear headings that summarise the area of business that is being reported.Table are
useful when communicating summary information used for reporting.

When would the financial manager use a table to present information? List and describe three
occasions.

The financial manager use a table to present information for instance;

1.The table shows the instructions to complete the quarterly for the company forexample :
prepared and sent a number of reports for BAS to be used the explanation summary as a gude
to complete future BASs
2.The information for budgeting for shows the service or variable costs-that vary with the
level of activity and prepare this report inorder to assist the patient care manager to produce
highly accurate budgets.
3.The summary will shows all the information for financial years and using this data the high
low method has been selected to provide the most accurate organisation performance
information.

When providing business performance information, what are graphics? Discuss in 30 to 50 words.

We providing business performance information for the client to save their time this can
include providing specific documents explaining how operations link to business performance
information.This can also listing specifir websites that the client cas use to increase their
understading and we will use Graphics are the detailed graphs ,chart and visual aids to shows
clients how business is expected to perform and are only used if relevant Graphics require
clear headings and numbering .Where necessary a brief summary will accompany the graphics.

4
 What advantage do graphs have over tables? List and describe two advantages.

In my opinion the advantage to use graphs have over tables for instance;
-A graph is a chart or drawing that shows the relationship between changing things.
- They help you visually see the difference between two or more values.
-They are a diagram displaying the relationship between numbers or amounts.
- A graph is one of the easiest ways to compare numbers.
- A graph or chart is used to present facts in visual form.
- They are a drawing that displays the relative sizes of numerical quantities.
- Graphs can be used to illustrate many types of data.
- They should be used to make facts clearer and more understandable.
- it shows trends over time.
- Forceful -- Emphasizes main point
- Convincing -- proves a point, see and hear
- Compact way to convey information
- More interesting than just talk or print
- Quick way for the audience to visualize what you are saying -- numbers trends up or down
- To bring facts to life
- To show and compare relationships
- To show and compare changes
- They are much easier to understand then a large table of numbers
- without the need to understand what each and every number in a table means.

How does the financial manager decide what level of detail to use in presenting reports? Discuss
in 30 to 50 words.

The financial manager have to decide what level of detail to use in presenting reports based
on ;
1.Previous financial statements
2. Owner or manager opinion
3.Current mark information or interest rates.
However,the all of report should estimates and projections to predict future expenses and
revenues.This step should involve discussions with the client or key staff.

What specific information is provided to clients who seek more business information in reports?
Discuss in 30 to 50 words.

The company should providing business performance information for the client to save their
time this can include providing specific documents explaining how operations link to business
 performance information.This can also listing specific websites that the client cas use to
increase their understanding.

Activity 17

What is risk management? Discuss in 30 to 50 words.

Risk management is the identification, assessment, and prioritization of risks followed by

coordinated and economical application of resources to minimize, monitor, and control the
probability and/or impact of unfortunate events or to maximize the realization of
opportunities. Risk managements objective is to assure uncertainty does not deflect the
endeavor from the business goals.

List two common risk management strategies.

The first of risk management strategies is Insurance products are a common strategy for
protecting against risk.
The second of risk management strategies is Internal control procedures this process of
managing business activities to react to situations can be caused by internal or external
factors.

How can clients reduce the cost of debtor default insurance? Discuss in 30 to 50 words.

The clients should have a suitable accounts receivable insurance.This will be more costly the
greater the coverage it is often beneficial to insure a particular category of accounts.This
could include new or accounts that are large in value.

What are operating costs? Discuss in 30 to 50 words.

Operating costs are the costs incurred with the regular day-to-day business activites.The
financial manager will need to consult the current reports used by the client to identify
operating costs.It is common for clients to request summaries of operating costs as the
majority of business performance information.

How does corporations law relate to the International Accounting Standards? Discuss in 30 to 50
words.
 The corporations laws relates to the International Accounting Standards in regard to the
preparation of business performance information.Those responsible for preparing reports need
to be aware of the IAS guidelines.These state that reports prepared for general purpose
financial report users must present a true and fair view of the business.

What is a general purpose financial report user? Discuss in 30 to 50 words.

The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an enterprise that is useful to a wide range of
users in making economic decisions (IASB Framework).

What do the IASs state in regard to reports prepared for GPFRUs? Discuss in 30 to 50 words.

The International Accounting Standards in regard to the preparation of business performance

information.Those responsible for preparing reports need to be aware of the IAS
guidelines.These state that reports prepared for general purpose financial report users must
present a true and fair view of the business.

List and briefly describe three GPFRUs.

In my opinion,General purpose financial reports identified in the preceding paragraphs, the

position adopted in this Statement is that the objective of general purpose financial reporting
is to provide information to users that is useful for making and evaluating decisions about the
allocation of scarce resources.

What should those preparing reports for GPFRUs be aware of? List and describe two
considerations.

The things should be aware for preparing reports for GPFRUs are Legislative protection for
consumer it will involve consumer protection law consists of several pieces of legislation.
These aim to outline the rights and obligations of business and consumers.
2.Privacy legislation outlines the obligations of businesses that use the private detail of
consumers.Legislation dictates that client data should be used only for the purpose of
providing the service that the business is hired for by the consumer.

Activity 18

What length of time is used to refer to short-term finance? Discuss in 30 to 50 words.

 The short-term finance can range one day to several months to three or five years.Factors
causing shourt-term finance needs are periodic and unplanned.Lenders who extend short-term
finance usually offer it at variable interest rates.

What are the normal reasons that clients are advised to agree to short-term finance? Discuss in
30 to 50 words.

In my opinion, the normal reasons that clients are advised to agree to short-term fianc
because It is easily available and favorable repayment histories are often approved
quickly.Short-term finance is usually for small amounts compared to long-term finance.Short-
term finance is used when the client has a short-term cash flow inadequacy.This means that
cash flows are not sufficient to meet repayment and general operating expenses.

How can short-term finance help the business to recover? Discuss in 30 to 50 words.

The short-term finance help the business to recover and improving their cash flows and paying
out the loan at any time without incurring penalty fees.This can lead to overall gains for the
business when including the cost of the finance when the returns from it exceed the costs.

List two advantages of short-term finance.

In my opinion the advantage of short-term finance for example;

1. Flexibility

One of the big advantages of short-term investing is that you have some flexibility. You do not
have to tie up your money for an extended period of time with this type of investment, as is
the case, for example, for the many people who purchase a corporate bond that has a maturity
of somewhere between 10 and 30 years. With this investment you have to keep it for a long
time before it matures. You could sell it in the secondary market, but you may not get what it
is worth.

2. Returns

Another advantage of short-term investing is that you can get substantial returns. With this
type of investment, you can often realize great returns after only a very short amount of time.
Then you sell the security to lock in your profit and look for something else to put money into.

What is a disadvantage of short-term finance?

 In the other hand ,the disadvantage of short-term finance for instance;
1.High Costs : Even if you don't think you're paying very much for a short-term loan, any fees
can add up very quickly. For instance, if you pay a $20 fee for a $200 payday loan that you pay
back in two weeks, the fee is 10 percent. However, if you were to pay that 10 percent fee
every two weeks for a year, you'd pay a total of $520, which is 260 percent of the original $200
loan.
2.Falling Into a Spiral : As an isolated event, a short-term loan can be harmless or, if you need
to pay high fees for it, expensive but otherwise not a problem. But needing a short-term loan
suggests the presence of an underlying financial instability. If you need to borrow money now
to pay a recurring bill, for example, you'll need the money to pay that back, as well as a
similar amount to pay the next month's bill when it comes due again. For some people, taking
out short-term loans can turn into a spiral of repeated borrowing without a way to surmount
the ever-increasing debt

What time period is used to refer to long-term finance? Discuss in 30 to 50 words.

The period is used to refer to long-term finance at least three to five years .Long-term finance
is often used for a specific business activity.This can include funding a new business purchase
or expanding an existing business.

When would clients normally be advised to seek long-term finance? Discuss in 30 to 50 words.

In my opinion ,the clients be advised to seek long-term finance for invest the new project or
would like to expand the company this have to specific business activity .

What is the advantage of long-term finance? Discuss in 30 to 50 words.

The advantage of long-term finance is avoiding increased interest repayments.When interest

rates are expected to rise long-term finance can save the client additional interest repayments
because the rates are normally fixed.Despite this advantage clients need to be advised that
predicting the movements in interest rates over the short-term can be difficult.

What is the main disadvantage of long-term finance? Discuss in 30 to 50 words.

The disadvantage of long-term finance is that interest rates may fall and the business will still
be ogliged to make repayment at the higher rate.This issue is magnified when the business has
surplus cash to repaythe loan but is unable to due to having agreed to a specified loan
period.Penalty for repaying ahead of time can outweigh the benefits from interest expense
savings.
Question 1

In what section of the financial plan are compliance obligations found? List the common forms
that have resulted from government financial policies.

a. Where can financial management instructions be found in meeting

compliance obligations and for identifying changes in legislation?

b. How can clients liabilities to state government charges be calculated?

c. List the five common taxes or charges levied by state or territory

governments.

Discuss in 120 to 150 words.

In what section of the financial plan are compliance obligations found? List the common forms
that have resulted from government financial policies.
The section of the financial plan are compliance obligations that have resulted from
government financial policies for including;
-Superannuation
-WorkCover
-Occupational and safe work requirements

a. Where can financial management instructions be found in meeting compliance obligations

and for identifying changes in legislation?
The financial management instructions be found meeting compliance obligations and for
identifying change in legislation in the www.australia .gov.au .Moreover,you can found in
legislation you can search the Federal Register of Legislation (formerly known as ComLaw)
website to access full text of Commonwealth Acts (Acts), Bills and Legislative Instruments
(Regulations) and Gazettes in electronic form.

b. How can clients liabilities to state government charges be calculated?

The payroll tax liability is comprised of the social security tax, Medicare tax, and various
income tax withholdings. The liability contains taxes that are paid by employees, and taxes
that are paid by the employer. The employer withholds those taxes that are paid by
employees, and remits them to the applicable government authorities, along with the taxes
that are paid by the company.

c. List the five common taxes or charges levied by state or territory governments.
- Good and Service Tax
- Company Tax
- Capital Gains Tax
- Payroll Tax
- Other Business Tax

Project 1
 1

Part 1

1. How are business expenses treated in regard to tax legislation? Discuss in 30

to 50 words.

Firstly, make sure you retain all of your receipts. This will ensure you claim
everything you are entitled to and is also a HMRC requirement - and
particularly important if you are GST registered.

And secondly, it is imperative you accurately record your transactions. Not

only will this hopefully ensure you claim everything you are entitled and
keep a tight handle on your business, but it is also a ATO requirement and
severe cases can lead to fines.

2. What allowance in tax legislation is there for businesses that are managed on
behalf of a trust? Discuss in 80 to 100 words.

In my opinion, the allowance in tax legislation for business that are managed
on behalf of a trust could be tax return becuase report income and file
income taxes with tax authorities such as the ATO in the Australia. Tax
returns allow taxpayers to calculate their tax liability and remit payments
or request refunds, as the case may be. In most countries, tax returns must
be filed every year for an individual or business that received income during
the year, whether through wages, interest, dividends, capital gains or other
profits.

3. Describe forecast returns and set up and describe a simple table over several
years for similar amounts. Discuss in 50 to 80 words.

In my opinion ,forecast return it will calculate break even point and for
Short-term returns are dominated by randomness, but long-term forecasts
for most asset classes can, in part, be derived mathematically (give or take
some arguing about the assumptions).

But why bother with long-term return expectations for example, 10-year
forecasts? For most multi-asset managers or tactical asset allocators, 10
years is an eternity. Investment managers are judged on much shorter time
frames.

4. Describe (150 to 180 words) how NFP sector organisations adhere to

government financial policies where the preparation of statutory returns are
required.
 Generally, a not-for-profit is an organisation that does not operate for the
profit, personal gain or other benefit of particular people (for example, its
members, the people who run it or their friends or relatives). The definition
of not-for-profit applies both while the organisation is operating and if it
winds up (closes down).

To be registered, your organisation must show the ACNC that it operates on

a not-for-profit basis. For many organisations this can be done by showing
that:

their governing documents include suitable not-for-profit clauses, and they

act consistently with these clauses.
It can still be a not-for-profit if it simply provides a benefit to a member
while genuinely carrying out its charitable purpose, or pays a member a
reasonable amount for services they have provided or reasonable
reimbursements.

Not-for-profit organisations may need to register for fringe benefits tax

(FBT) if they provide certain benefits to employees. If registered, your
organisation may be entitled to a rebate or an exemption for FBT,
depending on its status.

5. Your client is XYZ company. After discussions it is identified they require a

spreadsheet summarising the repayment amounts and current balance for a
long-term loan of $500,000 to be repaid over eight years at a rate of 10% per
annum. They are interested in business information that will show the
amount they need to repay each year.

Show the calculations required for the loan.

Prepare the spreadsheet for the loan. Include a summary section to comment
on the table. Round the initial opening balance of the loan up to the nearest
dollar and round up to present values in whole dollars.

Attach file already.

FNSACC501_Project 1.5.xlsx (10 KB)

6. List the four categories that clients business performance objectives can be
set up as.

6.1.The employee must achieve a sales goal in terms of dollar amounts or

new customers.
 6.2.An employee to achieve a billion dollars in sales within 60 days is
unrealistic

7. What does GPFRUs mean? List three potential users.

In my opinion,General purpose financial reports identified in the preceding

paragraphs, the position adopted in this Statement is that the objective of
general purpose financial reporting is to provide information to users that is
useful for making and evaluating decisions about the allocation of scarce
resources.
Three potential users including;
1.Compliance adherence to those statutory requirements,regulations, rules,
ordinances, directives or other externally-imposed requirements in respect
of which non-compliance may have, or may have had, a financial effect on
the reporting entity.

2.Financial position : to reporting entity, having regard to its control over

resources, financial structure, capacity for adaptation and solvency.

3.Financing and investing : will do activities of a reporting entity that relate

to the financing of its operations and the investment of its resources

8. What type of clients can expect state and territory charges? Discuss in 50 to
80 words.

The client holds land they will be liable for annual taxes and charges based
on the value of the land will including
1.Emergency services levies
2.Natural resources levies
3.Other taxes levied on wages including WorkCover
4.Hospitality liquor and gaming levies
5.Primary production registration levies.

9. How can the amount of taxes and charges on land be calculated? Discuss in
50 to 80 words.

We can calculate the amount of taxes and charges on land based on the
value of the land.State revenue offices in each state and territory can be
found through relevant websites.These can provide accurate tax amounts
which are then multiplied by the value of the clients land to calculate the
annual tax obligations.

10. What practices should these businesses and those who pay Commonwealth
taxes complete? Discuss in 80 to 100 words.
 Businesses can efficiently manage compliance through accurate record
keeping. This means that clients should ensure that all dollar amounts
entered into financial statements are incurred directly or indirectly to
generating business income.This includes all types of normal operating
expenses.The expenses should be accurately so that taxes and charges at
both state and Commonwealth levels are efficiently calculated.

Part 2

1. Use the supplied CIF to answer the questions listed.

a. Where can information about client objectives be found?

b. Describe (80 to 100 words) how the Type of business

section on the supplied CIF is relevant to the clients legal
and financial requirements, explain how this is important
to taxation.

ABC Financial Management

Client Information Form

Surname Citizen

First name John

Employment title Manager

Other key staff

Type of business Building services Sole proprietor

Financial Provide ongoing financial management especially in the reduction of annual

information sought income tax and checking goods and services tax (GST) and other legislative
reports.

Size Four full-time or equivalent staff.

Business assets $550,000 Tools, vehicles, building inventories

Revenue $ 1 Million

Expenses $ 680,000

Cash flow $50,000

Number of years
 operating

Current Internal reports by part-time administrative staff. Includes fortnightly payroll and
information payment of accounts and banking.

The CIF for John Citizen who runs a building business that employs for four
staff.The current financial information used for management is described in
the final row.This is information produced by an internal accounting package
by the part-time administrative staff.
Row six shows the financial information sought and in this CIF the business
requires ongoing financial management assistance.Jouhn requires specific
advice regarding how to correctly manage the high level of income tax
generated by the business as well as a system for lodging BAS.
In addition businesses will often require information regarding the financial
requirements neede to perform or obtain transactions.This includes
profitability to be able to repay loans,cash folws to be able to meet
payments and strueture business banking and an understanding of the
requirements of financial reporting.
This CIF will shows a small business.Business clients can range from this size
to large incorporated companies.Clients can require reports prepared for
government departments.

2. You have had discussions with the client who has explained that you were
recommended through a colleague in the NFP sector who you have been
providing acquittal services to.

Describe the different types of financial options that are available for
different clients related to the provision of business performance
information. Discuss in 150 to 180 words.

An option gives its owner the right to either buy or sell an asset at the
exercise price but the owner is not obligated to exercise (buy or sell) the
option. When an option reaches its expiration date without being exercised,
it is rendered useless with no value.

A commodity option is defined as a contract that allows a buyer the option

(not the obligation) to buy or sell the commodity at a specified price and
within a certain timeframe. For example, a trader buys the option to buy
wheat at 100 per bushel. The trader would profit if the market price of
wheat per bushel exceeded 100 per bushel.

Even if the price rises significantly, subject to the contract timeframe it

would allow the trader to exercise the wheat at 100 per bushel. If the
 market price dropped below 100 per bushel, the trader would not profit
from exercising the right to by the wheat at 100 per bushel and limit the
loss of this transaction to the cost of buying the option.

There are two types of options: calls and puts. Call options allow the option
holder to purchase an asset at a specified price before or at a particular
time. Put options are opposites of calls in that they allow the holder to sell
an asset at a specified price before or at a particular time. The holder of a
call speculates that the value of the underlying asset will move above the
exercise price (strike price) before expiry. Conversely, a holder of a put
option speculates that the value of the underlying asset will move below the
exercise price before expiry.

3. Prepare an example of a forecast versus actual for XYZ company for an

operational project. Include columns to show forecast returns versus actual
on a multi period report. Include a summary section.

FNSACC501_Project 1 part 2.3.xlsx (9.89 KB)

4. At what stage of financial management would you discover that the actual
rates of returns are significantly lower than those returns forecasted? Discuss
in 30 to 50 words.

In my opinions, the stage of financial management would you discover that

the actual rates of returns are significantly lower than those returns
forecasted is Net present value because the NPV will recognize the time
value of money.and can be summarized by a dollar received today is worth
more than a dollar received at a future time.

5. What would be the agreed criteria and what other steps would need to be
taken? Discuss in 30 to 50 words.

The other steps to be taken will be specific strategies and monitor client
objectives.

6. You work for ABC financial management. Your client is XYZ company. The
CEO contacts you directly on the 1st July, thanking you for the satisfaction of
current objectives in line with the financial plan. Current objectives are
reporting annual financial reports including preparing the BAS.

The client asks that this now ceases as the finance officer will take over the
duties. The client asks that you prepare a manual to assist the finance officer
in their new duties. The client also asks that you now assist with preparing
for and recording monthly governance board meetings.
 a. Prepare a quarterly financial management questionnaire
for the current quarter to show the current and proposed
new objectives as if they had been discovered as a result
of the quarterly questionnaire process.

b. Prepare a file note to properly record the main points of

your phone call with the CEO.

FNSACC501_Project 1 Part 2.6.docx (13.3 KB)

7. Your client contact is the finance officer of XYZ company. They phone you
briefly on 1.10.20xx and say that the financial position detail report contains
too much detail. They also state that there is no explanation for the changes
in financial position even though they know that several new desks were
purchased in the previous quarter because they recorded them on the asset
register. Prepare a file note to show how the feedback will be incorporated
into services to the client.

FNSACC501_Project 1 Part 2.7.docx (209 KB)

8. Your client is XYZ company. They phone you on 15.11.20xx and question what
has caused them to pay higher than normal GST. Your investigation shows
that the income amount included the previous years income. Record a file
note to implement improved customer services.

FNSACC501_Project 1 Part 2.8.docx (10.6 KB)

9. Consider the two sets of financial data shown.

GEF Organisation BAS Summary Sheet

Prepared by the Financial Officer
For the period ending 30.9.20xx

GST Received on income $2,500

GST Paid on expenses $2,500

Plus PAYG on wages $10,000

GST Payable/ (Receivable) $10,000

From the ATO

GEF Organisation BAS Summary Sheet

Prepared by the Financial Officer
For the period ending 30.12.20xx
 GST Received on income $100,000

GST Paid on expenses $2,500

Plus PAYG on wages $10,000

GST Payable/ (Receivable) $107,500

From the ATO

a. What would be of interest to the financial manager

responsible for preparing the BAS based on the reports?
Discuss in 30 to 50 words.

The financial manager responsible to prepared a financial plan that

identified XYZ required assistance fulfilling its GST obligations.and XYZ
agreed to provide a BAS summary sheet within 14 days of the completion of
each quarter so that Financial manager could complete the BAS on time.

b. For what reason would this be of interest? Discuss in 30 to

50 words.

The reason would this be of interest from GST received on income and have
to concerned the high amount of GST payable

c. What steps should the financial manager take in this

scenario? Discuss in 50 to 80 words.

The step should be taken are after receiving the summary sheet for the
December quarter the financial manager is concerned about the high amount
of GST payable.The financial manager telephones the FO at XYZ who is the
primary contact listed in the financial plan.The FO checks the accounting
records and discovers that due to timing a large amount of revenue was
received from funding bodies.

11. Use the following information to prepare a bank reconciliation for KLM
company.

Closing account balance 30.6.20xx, $68,000

Unpresented cheques:

Number 100 $5,000

Number 101 $5,000

Number 102 $3,000

 Number 103 $4,000

KLM Bank Statement extract

June 20xx

Date Detail Dr Cr Balance

20.6.20xx Cheque number 98 $10,000 $80,000

25.6.20xx Deposit $10,000 $90,000

30.6.20xx Cheque number 99 $5,000 $85,000

Attach file already.

FNSACC501_Project 1 part 2.10.xlsx (10.6 KB)

12. Consider the financial performance comparisons. Provide analysis (150 to 180
words) to describe the comparisons.

KLM Company
Comparison of financial performance
2012 and 2013

Account 2012 2013 $ Per Common Size (per cent of sales

Difference Cent income)

2012 2013

Sales Income $230,000 $320,000 $90,000 39 100 100

Cost of sales $115,000 $165,000 $50,000 43 50 51.6

Wage Costs $30,000 $45,000 $15,000 50 13 14

Transport $25,000 $35,000 $10,000 40 10.9 10.9

Costs

Marketing $15,000 $20,000 $5,000 33 6.5 6.3

Costs

Total costs $185,000 $265,000 $80,000 43 80.4 82.8

Profit $45,000 $55,000 $10,000 22 19.6 17.2

13. Attach file already.

14. FNSACC501_Project 1 part 2.11.xlsx (9.84 KB)

15. Consider the supplied costbenefit analysis.

 c. Complete the cash flows in the table.

d. Considering the effect on cash flow, is the analysis

worthwhile? Discuss in 30 to 50 words.

QRS Co. Motor vehicle expense account

Costbenefit analysis using
Budget versus Actual Variance Reporting
October 20xx

Month Existing Estimate Change to Effect on:

Income Expenses Cash Flow

July $700

Aug $750

Sept $800

Oct $900

Nov $950 $830 (120) 120

Dec $800 $680 (120) 120

Jan $800 $680 (120) 120

Feb $800 $680 (120) 120

Mar $800 $680 (120) 120

Apr $800 $680 (120) 120

May $800 $680 (120) 120

June $800 $680 (120) 120

Total $9,700 $5,590 (960) 960

16. This table shows the cost-benefit analysis impact on the business using
budget versus actual variance reporting .As a result of tighter controls the
company revised down the motor vehicle expense in November This is shows
in the second column inrow seven.The company found that it could save 120
 per month as a result of introducing fuel cards to designated staff and
locking the keys to vehicles with the administration staff.

17. Which ratio is used to measure financial stability? Discuss in 80 to 100 words.

Liquidity
The most common liquidity ratio is the current ratio, which is the ratio of
current assets to current liabilities. This ratio indicates a company's ability
to pay its short-term bills. A ratio of greater than one is usually a minimum
because anything less than one means the company has more liabilities than
assets. A high ratio indicates more of a safety cushion, which increases
flexibility because some of the inventory items and receivable balances may
not be easily convertible to cash. Companies can improve the current ratio
by paying down debt, converting short-term debt into long-term debt,
collecting its receivables faster and buying inventory only when necessary.

Solvency
Solvency ratios indicate financial stability because they measure a company's
debt relative to its assets and equity. A company with too much debt may
not have the flexibility to manage its cash flow if interest rates rise or if
business conditions deteriorate. The common solvency ratios are debt-to-
asset and debt-to-equity. The debt-to-asset ratio is the ratio of total debt
to total assets. The debt-to-equity ratio is the ratio of total debt to
shareholders' equity, which is the difference between total assets and total
liabilities.

Profitability
Profitability ratios indicate management's ability to convert sales dollars
into profits and cash flow. The common ratios are gross margin, operating
margin and net income margin. The gross margin is the ratio of gross profits
to sales. The gross profit is equal to sales minus cost of goods sold. The
operating margin is the ratio of operating profits to sales and net income
margin is the ratio of net income to sales. The operating profit is equal to
the gross profit minus operating expenses, while the net income is equal to
the operating profit minus interest and taxes. The return-on-asset ratio,
which is the ratio of net income to total assets, measures a company's
effectiveness in deploying its assets to generate profits. The return-on-
investment ratio, which is the ratio of net income to shareholders' equity,
indicates a company's ability to generate a return for its owners.

Efficiency
Two common efficiency ratios are inventory turnover and receivables
 turnover. Inventory turnover is the ratio of cost of goods sold to inventory.
A high inventory turnover ratio means that the company is successful in
converting its inventory into sales. The receivables turnover ratio is the
ratio of credit sales to accounts receivable, which tracks outstanding credit
sales. A high accounts receivable turnover means that the company is
successful in collecting its outstanding credit balances.

18. Use the financial statement to calculate the debt ratio including a discussion
(80 to 100 words).

XYZ Ltd
Financial Statement Extract
As at 30.6.20xx

Item Financial year 20xx

Total assets $1,500,000

Current assets $300,000

Total liabilities $250,000

Profit $200,000

19. Total liabilities = 250,000

Total Asset = 1,500,000
Debt ratio = 250,000 / 1,500,000 =16.67%

20. Consider this report. At what stage of the financial management process
would the report be prepared? Discuss in 50 to 80 words.

TUV Co - Extract
September 20xx

Expectations and Objectives Analysis

Analyse the business financial Reports have been prepared analysing the clients business in
performance comparison to industry averages.

Summary:
TUV Cos owners have asked that their business be analysed to determine if the financial performance is
acceptable. The review has been performed annually for the previous three years.
The business analysis consists of performing ratio analysis on the financial statements supplied by the
clients finance officer. The analysis identified that the business was: profitable, stable and efficient
compared with other businesses in the same industry.
The analysis is currently prepared in a one page executive summary and sent to the owners of TUV. As a
 result the client has continued operations. The client has consistently made reference to the interest of
the finance officer through phone calls and on the annual client questionnaire.

Actions:
The client recently commented that they would prefer a more comprehensive report that describes the
analysis with the aim of promoting the finance officer to manager. The client would like to effectively
hand over the business operations to the FO.
Therefore the ratio analysis summary will be expanded to include all workings and explanations. The
financial plan will need to be updated and formally agreed to by the client. A letter will be prepared by
the financial manager and sent to the client suggesting that they book an interview at their earliest
convenience.

21. The table shows the current client objectives-taken from the financial plan
kept on file-stated under the heading objectives and expectations .The
client requires analysis of business performance.And under the heading
Analysis the current business performance information that has been
prepared is discussed.The summary comments on the information contained
in the file including phone calls and the financial plan.The proposed action
is for the financial manager to prepare a letter suggesting a face-to-face
meeting with the clients.The meeting is required to confirm and restate the
actual personal and business needs of the client in new objectives.

22. It is the end of the financial year and your client is XYZ company. From the
following file note summary prepare an evaluation report.

File note summary XYZ company. Financial potential $33,000 annually for the
previous three years. Accumulated surplus $100,000. Statutory requirements:
prepare and lodge BAS and IT. Compilation assurance. Reports provided by
XYZs CEO. Preference to invest in government bonds. No contingency cash
expected.

Attach file already.

FNSACC501_Project 1 Part 2.16.docx (12.5 KB)

23. You work for ABC financial management. What are the consequences for
clients of not meeting reporting deadlines? Discuss in 50 to 80 words.

The deadline to submit your online SAT is 11.59 pm (EST), January 31, of
each year. If you fail to meet the deadline your information will be shared
with the Quality Assurance Committee.
-You will be required to submit a letter to the Quality Assurance Committee
explaining
why you missed the deadline and the committee will review the letter.
 -You may be required to pay a fee.
A fee of $50.00 may be charged to a member by the College for reminding a
member to do
something that they are required to do but have failed to do.

24. Prepare a fictitious financial plan extract that includes sections on financial
information sought, compliance and reporting deadlines.

Attach file already.

FNSACC501_Project 1 Part 2.18.docx (12 KB)

25. Prepare a column graph from the following table. Computer applications
which produce charts can be used if you prefer.

Activity Level:
Month
Patient - Days

January 5,600

February 7,100

March 5,000

April 6,000

May 7,300

June 8,000

July 6,200

26. Attach file already.

27. FNSACC501_Project 1 part 2.19.xlsx (11.5 KB)

28. Your client, XYZ company enters transactions which they send to you to
prepare their tax return. They have had difficulty in identifying which
transactions to record. Expenses have been underreported and this has
resulted in over taxation. The main expense underreported is for motor
vehicle fuel expenses which occur away from the business. How would this
situation affect your preparation of the financial plan? Discuss in 30 to 50
words.

The client has had difficulty in accurately reporting and expenses have been
under reported .This has resulted in over taxation.The client is advised to
collect and enter in the accounting system all invoices that are incurred in
 connection with earning the business income.and The motor vehicle refilling
invoices are specifically mentioned to remind the client to include these.

29. It is the end of the financial year. Your client, XYZ company requires
assistance identifying and managing the risks of taxation compliance.

Prepare a financial extract to identify and manage risks by advising your

client which transactions to collect and enter in the accounting system.
Include revenues and expenses. Specifically mention livestock selling
expenses that are incurred away from the business and for which the
manager often forgets to collect a receipt. Describe how bank accounts can
be set up to ensure this type of transaction is recorded.

Attach file already.

FNSACC501_Project 1 Part 2.21.docx (11.5 KB)

30. On the 30th June 20xx you advise your client, XYZ company to take out a
loan. The business contact requires a loan to fund a long-term amount where
$100,000 is borrowed and compounded at 10% annually for five years. The
formula is:

FV = PV (1+i)

Perform the calculation to achieve the total amount of the loan over the five
years. What is the annual repayment amount?

Present the loan in an appropriate table showing the zero closing balance at
the end of five years.

Attach file already.

FNSACC501_Project 1 part 2.22.xlsx (9.1 KB)