Reference no: EM132604339

BSBFIM501 - Manage budgets and financial plans

Q1: What is cash flow and why is it important for a business?

Q2:What is GST, and how is it calculated?

Q3:When calculating your GST debt to the government what is a business input offset?

Q4: Define each of the three parts of the accounting equation, A = L +OE.

Q5:What is the purpose of a profit and loss statement?

Q6: In a private company who is allowed access to a profit and loss statement?

Q7: What other financial document should these stakeholders be given at the same time as the annual profit and loss?

Q8: Think of an industry that you are interested in/working in, what sort of budgets would they need to develop to support the running of a business?

Q9: Research company tax on the Australian Tax Office website and explain the following:
1. What is a base rate entity
2. What is a franking credit?
3. What is PAYG and what does a company have to do with it?
4. What is the Act of Parliament that controls taxation in Australia?
5. What is the rate of tax that a sole trader must pay?

Q10: What is a ledger and what is it used for?

Q11: How does a company ensure that it is keeping up its audit requirements?

Q12: One major area of responsibility that a manger has is to monitor the income and outgoings of a business. What documents or processes would they use to do this?

Q13: What happens to a business that fails to look after its accounting requirements'?

Q14: What is Petty Cash and what is it used for?

Q15: What people within a business or organisation should be responsible for writing a budget, why?

Q16: How would you build a contingency plan into your budgets?

Q17: Why would you build a contingency plan into your budgets?

Q18: What processes would you put in place to keep track of budgets and other financial information?

Q19: Who should let relevant employees know their budget requirements and why?

Q20: What are the dates for the financial year in Australia?

Q21: Do all businesses have to stick to this accounting cycle, why, why not?

Q22: All budgets area compromise between the needs and wants of different parts of an organisation, what sort of negotiation is needed before a budget is completed?

Q23: Describe the various ways that data can be collected when preparing a budget?