1. icult to obtain comparable financial information for more than the past year.

2. Lock down: Do not allow others to change the standard chart of accounts
without a very good reason, since having many versions in use makes it more
difficult to consolidate the results of the business.
3. Size reduction: Periodically review the account list to see if any accounts contain
relatively immaterial amounts. If so, and if this information is not needed for
special reports, shut down these accounts and roll the stored information into a
larger account. Doing this periodically keeps the number of accounts down to a
manageable level.

1. Explain the purpose of a profit and loss statement and give two of its key features.
The key purpose of the profit and loss statement is to provide the financial position
and financial performance of the business. It gives the information about the income
and expenses of the business during the year. It helps to maintain sales target and
appropriate sales price for goods and services.

Its key features are:

 Profit and loss account only shows the numbers it does not show how the
profit or loss was made or in simple words it does not depicts what business
company is doing.

 It includes non cash expense like depreciation.

Assessment Task 2: Budget planning project

1. Develop a draft marketing budget

As the Marketing Manager for King Edward VII College, you are required to develop
a budget for marketing for the year. Review the case study information provided to
you and, based on amounts allocated to each marketing activity, develop a marketing
budget using the Marketing Budget Template to discuss at a meeting with the CEO.

Save this document as Draft Marketing Budget.

Prior to the meeting, you are also required to research the benefits of television
advertising in order to present a case for an increase in budget. Make notes to assist
you at the meeting.

2. Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate
(polite, business-like) style.
It should introduce and summarise the contents of the attachment and ask for an appointment to
discuss it with them.

Attach your draft marketing budget to the email.

Your assessor will advise you of the time and date of the meeting.