BSB50420: Explain the process to establish and review profits and losses from financial statements: Diploma of Leadership and Management Assignment

Answer the following questions:

1.1. Explain the process to establish and review profits and losses from financial statements.

1.2. Why it is important to review profits and losses from financial statements? Answer in 150-200 words – It helps the organisation determine where they are at in their plans, what is working, what needs to be changed etc

1.3. Explain the following processes/methods of analysing financial statements in 150-200 words.

• Vertical Analysis – a process in which each line item is identified as a percentage of a base figure in the statement.
• Horizontal Analysis – It examines and compares shifts in a company’s financial figures over various reporting periods

Q.2. Answer the following questions regarding principles of accounting and budgeting:

2.1. What is financial probity? Why is it required in organizations? Write your answer in 150-200 words.

2.2. What are the requirements for financial probity?

Answer the following questions:

Q. 3.  3.1 Explain the four (4) principles of accounting and financial systems in 100-150 words

3.2 Why principles of accounting and financial systems should be maintained in organisations? Answer in 100-150 words.

a) to be able to communicate economic information in a language that is acceptable and understandable from one business to another.

b) to ensure that a company’s financial statements are complete, consistent, and comparable.

c) easier for investors to analyze and extract useful information from the company’s financial statements, including trend data, over some time.

d) ensures that companies follow certain standards of recording how economic events should be recognised, recorded, and presented

Q4: Answer the following questions:
4.1 Explain three (3) key functions of financial management software? Write your answer in 150-200 words.
4.2 What are the three (3) benefits of financial management software? Write your answer in 100-150 words.

Q5: Answer the following questions:

5.1. What are the four (4) key components of a financial budget? Answer in 150-200 words.
5.2. Explain three (3) essential parts of developing a budget in 150-200 words. (Revenue Forecasting, Expenses estimates, Cashflow projections)

Q6: Answer the following questions:

6.1. 6.1 What are the legislation and conventions relevant to financial management in the organisation? Write your answer in 150-200 words.

6.2 Explain the following Australian, international and local legislation and conventions that are relevant to financial management in an organisation.

a) Competition and Consumer Act 2010
b) Privacy Act 1988
c) National Employment Standards under the Fair Work Act 2009

Q7: Answer the following questions:

7.1 What are the Australian Tax Office (ATO) requirements for :
a) Goods and Services Tax
b) Company Tax
c) Pay As You Go (PAYG).

Write 150-200 words for each.

7.2 What are the main responsibilities of the Australian Tax Office (ATO)? Answer in 70-120 words

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