Assessment Tasks and Instructions

Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXFIN003 Manage finances within a budget
Stream/Cluster
Trainer/Assessor

Assessment for this Unit of Competency/Cluster Details

Assessment 1 Short Answers
Assessment 2 Project
Assessment 3
Assessment conducted in this instance: Assessment 1 2 3

Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further information required

Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:

Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature Date

2nd Assessor to complete

I agree the adjustments applied to this assessment are reasonable
Name

Signature Date

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Assessment Guidelines

What will be assessed

The purpose of this assessment is to assess your underpinning knowledge to complete the tasks outlined in
the elements and performance criteria for this unit of competency and relating to the following aspects:

 types of financial records:

o bank deposit documentation
o bank statements
o banking summaries
o business activity statements
o cheque books
o credit card transaction statements
o invoices
o journal entries
o labour and wages reports
o merchant statements
o merchant summaries
o transaction reports
 types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
 factors for consideration in the preparation of financial and statistical reports:
o cash flow
o commercial account activity
o commission earnings
o covers and financial return
o daily, weekly and monthly transactions
o expenditure
o income
o occupancy rates and financial return
o performance of department, project and/or products and services
o sales performance
o sales returns
o staff costs

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 o stock levels
o variance in income and/or expenditure
o wastage
o yield
 use, contents of and formats for:
o budgets
o financial reports
o statistical reports
 budget terminology
 specific industry sector and organisation:
o use of budgets to control costs and enhance profitability
o importance of budget control
o techniques for maximising budget performance
o financial reporting procedures and cycles
o features and functions of accounting software programs used to manage budgets.
Place/Location where assessment will be conducted
RTO to complete

Resource Requirements
Pen, Paper or computer

Instructions for assessment including WHS requirements

You are required to address all questions to achieve competence. Your trainer will provide you with
instructions for time frames and dates to complete this assessment.
Once completed, carefully read the responses you have provided and check for completeness. Your trainer
will provide you with feedback and the result you have achieved.

Statement of Authenticity
I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained
to me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201

This assessment: First Attempt 2nd Attempt Extension – Date:    /    /   

RESULT OF ASSESSMENT Satisfactory Not Yet Satisfactory

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 Feedback to Student:

Assessor(s) Signature(s): Date:    /    /     

Student Signature Date:    /    /     

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Assessment 1

Your Task:

Answer the following questions below. All questions must be answered.

Question 1
List 8 examples for financial records
1. BANK STATEMENT- John is just starting his small Business. John, a local farmer, grows hay in his many fields.
Though he does not see himself as an entrepreneur John intends to grow his profits. He truly is
an entrepreneur : he is in charge of his future and wants it that way.
John is also his own accountant. He uses quickbooks to keep records of what he spends and what he makes. To
John, his statements are one of the most important financial records. He will learn this later when he
experiences bank statement errors.
Recently, John realized his account balance is was too low. Thanks to internet banking, he realized fraud has
occurred in the form of theft. Someone has his card number and is using it for their own gain.
John makes quick work of this. He calls and is able to take care of the theft. Due to the fact that
his bank has fraud prevention he eventually receives his funds back. John is set to ease with this result and can
move on to grow his business.

2.INVOICE - When a retailer purchases goods from a manufacturer, the goods are shipped to the retailer’s
receiving department with an invoice sent to the retailer’s accounting department. This invoice acts like a bill
indicating that the retailer still needs to pay for the goods it received from the manufacturer.
The invoice lists the amount of goods ordered and shipped along with the cash discount period and other terms
of sale. The retailer’s accounting department then issues a payment to the manufacturer and includes a copy of
the invoice, so the manufacturer can apply the payment to the proper purchase account.

3. JOURNAL ENTRIES- Company A was incorporated on January 1, 20X0 with an initial capital of 5,000 shares of
common stock having $20 par value. During the first month of its operations, the company engaged in the
following transactions:
Date Transaction
Jan 2 An amount of $36,000 was paid as advance rent for
three months.
Jan 3 Paid $60,000 cash on the purchase of equipment
costing $80,000. The remaining amount was recognized
as a one year note payable with interest rate of 9%.
Jan 4 Purchased office supplies costing $17,600 on account.

The following table shows the journal entries for the

above transactions.

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 Dat
Account Debit Credit
e
Jan 100,00
Cash  
1 0
  Common
  100,000
Stock
Jan
Prepaid Rent 36,000  
2
  Cash   36,000
Jan
Equipment 80,000  
3
  Cash   60,000
  Notes
  20,000
Payable
Jan
Office Supplies 17,600  
4
  Accounts
  17,600
Payable

4.TRANSACTION REPORT- The following example demonstrates how to define a transaction report using the
Report Wizard and the graphical indexer.
The sample report that we are archiving is a Loan Delinquency Report. Each page of the loan delinquency report
contains loan records. Each record contains a unique value, the loan number. The records in the report are
sorted on the loan number. We want to use the following pieces of information as indexes:
-Report Date
-Starting Page Number
-Loan Number (this will be the transaction field)
As a general rule you should define triggers and fields from top left to bottom right of the report. This has the
added benefit of making your indexer parameters easier to understand.
The following example shows a sample page of the report.
REPORT D33313001 ONDEMAND NATIONAL BANK DATE 01-15-00
BANK 001 TIME 16:03:46
FROM 01/01/99 MODE 9
TO 12/31/99 LOAN DELINQUENCY REPORT PAGE 0001

LOAN CUSTOMER LOAN DELINQUENT DELINQUENT DELINQUENT

NUMBER NAME AMOUNT 30 DAYS 60 DAYS 90 DAYS

0100000000 AARON, ROBERT $10000000.00 $ 50.00 $ 50.00 $ .00

0100000001 ABBOTT, DAVID $ 11000.00 $ 100.00 $ 200.00 $ .00
0100000002 ABBOTT, DAVID $ 12000.00 $ 140.00 $ .00 $ .00
0100000003 ABBOTT, DAVID $ 13000.00 $ 150.00 $ .00 $ .00
0100000005 ROBINS, STEVEN $ 500.00 $ 50.00 $ .00 $ .00
0100000006 ARNOLD, SAMUEL $ 1000.00 $ 75.00 $ 150.00 $ 225.00
0100000007 PETERS, PAUL $ 650.00 $ 50.00 $ .00 $ .00
0100000008 ROBERTS $ 9000.00 $ 120.00 $ .00 $ .00
0100000009 SMITH, RANDOLPH $ 8000.00 $ 115.00 $ .00 $ .00

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 0100000010 KLINE, PETER $ 8500.00 $ 110.00 $ .00 $ .00

5.Example: BUSINESS ACTIVITY STATEMENT – front

To make sure we scan your activity statement correctly:

 print clearly using a black pen

 leave boxes blank if they don't apply to you, unless we ask you to write '0' (do not use NIL)
 show whole dollars only (round cents down to the nearest whole dollar)
 don't report negative figures or use symbols such as +, -, /, $
 don't write any additional information on your activity statement – contact us if your details have
changed.

6.BANKING SERVICES- The following examples —

 Short-term loans to businesses (repos, commercial paper)

 Short-term loans to other banks

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  Long-term loans such for residential/commercial/construction loans
 Letters of credit (guarantees for international financing)
 Unused commitments (revolving lines of credit)
 Hedging FX/Interest Rate fluctuations for large customers (taking the other side of the
trade/creating an O...

7.BANK DEPOSIT -

First monthly direct deposit

scheduled for 2019      

               

Date of direct deposit: 2019-01-15        

               

  Payment(s)          

  RREGOP Retirement pension     $1 997.52    

        Sub-total (+) = $1 997.52    

  Deduction(s)          

  Federal tax       $124.22    

  Provincial tax     $108.77    

  Products La Capitale Financial Group   $105.53    

        Sub-total (-) = $338.52    

Total amount of 1st direct $1 659.0

      deposit 0  

8.BANK SUMMARIES- The bank account summary shows the up-to-date position of your finances in the business
represented by cash in the bank, credit cards, loans and petty cash.

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 Question 2
List 4 different types of budgets.

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 1.Master Budget
A master budget is an aggregate of a company's individual budgets designed to present a complete picture
of its financial activity and health. The master budget combines factors like sales, operating expenses, assets,
and income streams to allow companies to establish goals and evaluate their overall performance, as well as
that of individual cost centers within the organization. Master budgets are often used in larger companies to
keep all individual managers aligned.

2.Operating Budget
An operating budget is a forecast and analysis of projected income and expenses over the course of a specified
time period. To create an accurate picture, operating budgets must account for factors such as sales, production,
labor costs, materials costs, overhead, manufacturing costs, and administrative expenses. Operating budgets are
generally created on a weekly, monthly, or yearly basis. A manager might compare these reports month after
month to see if a company is overspending on supplies.

3.Cash Flow Budget

A cash flow budget is a means of projecting how and when cash comes in and flows out of a business within a
specified time period. It can be useful in helping a company determine whether it's managing its cash wisely.
Cash flow budgets consider factors such as accounts payable and accounts receivable to assess whether a
company has ample cash on hand to continue operating, the extent to which it is using its cash productively, and
its likelihood of generating cash in the near future. A construction company, for example, might use its cash flow
budget to determine whether it can start a new building project before getting paid for the work it has in
progress.

4.Financial Budget
A financial budget presents a company's strategy for managing its assets, cash flow, income, and expenses. A
financial budget is used to establish a picture of a company's financial health and present a comprehensive
overview of its spending relative to revenues from core operations. A software company, for instance, might use
its financial budget to determine its value in the context of a public stock offering or merger.

Question 3
What is the purpose of preparing a draft budget?
Drafting Your Budget. Save time and money by preparing the right financial plan for your business. ... The
purpose of a budget is to give you a visual description of the expected financial results of your business
activities.

Question 4
What should you do with the feedback from the draft budget?

The budgeting process requires strong negotiation skills as the feedback provided on the draft budget may be
quite negative. It is important to convince staff of the achievability of the budget rather than to simply tell them
"That's the budget and you must achieve it, or else." The different options presented in the draft budget and the
feedback on each situation must be analysed thoroughly.

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 Question 5
List 2 people the final budget might need to be distributed to.
1.Gina Abudi

2. Martin

Question 6
Why is it important for each department head to understand their part of the budget?

Every decision a company makes is directly or indirectly influenced by its Budget. ... It is essential for a company
to ensure that the Budget Head and Budget Holder have the same goals for the company. Because a company's
future revenues and expenditures are unknown, the FP&A team.

Question 7
Why should all staff have some knowledge of the budget for their area?

Budget Allocation and Monitoring. Good financial management systems and processes for tracking resource
utilisation are essential for a department to make effective use of its resources. Effective planning and financial
control will help departments to: ensure the efficient and effective use of resources.

Question 8
Once the final budget has been approved, how often should it be monitored?

Once the final budget has been approved, To monitor throughout the year you need to know what has been
spent against the budget, the commitments against the budget and how much is remaining.

Question 9
As well as receiving the final budget the management team should be advised of their reporting duties. What
should their report contain?
This is all day-to-day expenses needed to operate a business, such as sales salaries, rent, office supplies, and
utilities.

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 Question 10
Name 2 financial reports you might generate from your accounting system to check your budget against
actual income or expenditure.
1. Cash flow forecasts

2. Financial reports

Question 11
Every revenue and expense item on the Profit and Loss Statement should be compared to what?
Income Statement
An income statement is one of the three important financial statements used for reporting a company's financial
performance over a specific accounting period, with the other two key statements being the balance sheet and
the statement of cash flows. Also known as the profit and loss statement or the statement of revenue and
expense, the income statement primarily focuses on company’s revenues and expenses during a particular
period.

Question 12
When revenue variances occur, why should you talk to the staff to help identify, and find options to
address the issue?

Always indicate whether a variance is favorable or unfavorable. A variance is usually considered favorable if it

improves net income and unfavorable if it decreases income. Therefore, when actual revenues exceed budgeted
amounts, the resulting variance is favorable.

Question 13
List 2 factors that can cause variances in staff budgets.
1. Labor. Labor costs are affected both by the budgeted pay rate and the number of hours that employees work.

2.Materials. The cost of materials is the other major factor in the budget variance. ...

Question 14
List 3 colleagues you may advise if you noticed that there were deviations between your budget and your
targets.

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 1.Manage a budget at work

2.Acceptable budget variance

3.Manage money effectively

Question 15
List 2 ways you might research new approaches to managing your budget.
1.Start with the work completed. See how the project plan looks when you add the new objectives. ...
2.Compare your budget to actual spending. ...

Question 16
List 3 things you need to include in your budget report, to give the decision maker enough information to do a
clear cost versus benefit analysis of the budget request.
1. Money in. List your sources of income for the month.

2. Money out. Next, look back over your last few months of bank statements to help you list all of your
monthly expenses. ...

3. Assess The Situation.

Question 17
If you are cutting expenditure, why must you be careful that the cuts do not cause the level of service and
product to fall?
Times are tough.  Your company isn’t making as much profit as it used to. Perhaps it isn’t making a profit at all. 
You need to cut costs, but where? 
What about maintenance?  Maintenance costs a lot of money, and in a slowing market, maybe you don’t need
the equipment to be as reliable as we used to.  Maybe you can defer maintenance till another time, when your
finances look better.  And in a budget that big, there is bound to be some fat that can be cut.
That may be true, but before you rush in and cut the maintenance budget, here are a few questions you should
ask your Maintenance Manager (and the risks if you don’t).

Question 18
Name an accounting program you can use to help manage budgets.
1.Scoro. Scoro combines budgeting features with other tools to manage your entire company
in onesystem. ...

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 2.Centage. Centage is a comprehensive enterprise budgeting software provider that offers different
tools called Maestros for budgeting, forecasting, financial reporting, etc.

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