SITXFIN002 Student Assessment Tasks

Lower Ground 121 Queen Street Campbelltown NSW 2560
CAMPBELL Phone: 0422 092 884 • Email: info@Campbellinstitute.edu.au

INSTITUTE
www.campbellinstitute.edu.au
Student Assessment Tasks
SITXFIN002 Interpret financial information
SITXFIN002 Interpret financial information Student Assessment Tasks

1
INSTITUTE
Contents
Introduction ......................................................................................................................................... 4
Assessment for this unit ...................................................................................................................... 4
Preparing for assessment ................................................................................................................... 4
Assessment Task 1: Knowledge questions ........................................................................................ 4
Information for students .................................................................................................................. 5
Questions ........................................................................................................................................ 6
Assessment Task 1: Checklist ....................................................... Error! Bookmark not defined.
Assessment Task 2: Project ............................................................................................................. 16
Information for students ................................................................................................................ 16
Activities ........................................................................................................................................ 17
Assessment Task 2: Checklist ....................................................... Error! Bookmark not defined.
Final results record ............................................................................ Error! Bookmark not defined.
Assessment Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
 I declare that this task is all my own work and I have not cheated or plagiarised the work or
colluded with any other student(s).
 I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken
against me according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment
tasks.
Ekram Mohammed
Student name
20230225
Student ID number
Ekram
Student signature
01/10/2023
Date

2
INSTITUTE

3
INSTITUTE
Introduction
Welcome to the Student Assessment Tasks for SITXFIN002 Interpret financial information. These
tasks have been designed to help you demonstrate the skills and knowledge that you have learnt
during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also
follow the advice provided in the Hospitality Works Student User Guide. The Student User Guide
provides important information for you relating to completing assessment successfully.
Assessment for this unit

SITXFIN002 Interpret financial information describes the performance outcomes, skills and
knowledge required to interpret financial information and reports used by organisations to monitor
business performance and provide information on operational or departmental financial activities.
For you to be assessed as competent, you must successfully complete two assessment tasks:
• Assessment Task 1: Knowledge questions – You must answer all questions correctly.
• Assessment Task 2: Project – This task requires you to analyse and use financial information
and accounting software for a case study business, resolve discrepancies and interpret and
report on operational activity.
Preparing for assessment

Please read through all of the assessment tasks and related documents carefully before you get
started. Ensure that you have everything that you need and seek clarification from your trainer,
assessor or workplace supervisor if you have any questions.
Supporting resources: Supporting resources include templates, journals, workbooks and

portfolios which can be used to support you in providing evidence of your competence. Your
assessor will provide you with these documents before you begin your assessment tasks. For
this unit, the supporting resources comprise:
• Financial Data and Reports Pack (Assessment Task 2)
Once you have read through the assessment tasks and are satisfied that you are clear on the
requirements and submission dates, complete and sign a Student Assessment Agreement. Your
assessor will countersign the agreement and keep it on file. You will find a Student Assessment
Agreement in Appendix B of your Hospitality Works Student User Guide or your RTO will provide
you with one.
Remember to check your Hospitality Works Student User Guide for information about:
• submitting assessments • re-assessment guidelines
• assessment appeals • responding to written questions.

Assessment Task 1: Knowledge questions

4
INSTITUTE
Information for students

Knowledge questions are designed to help you demonstrate the knowledge which you have
acquired during the learning phase of this unit. Ensure that you:
• review the advice to students regarding answering knowledge questions in the Hospitality
Works Student User Guide
• comply with the due date for assessment which your assessor will provide
• adhere with your RTO’s submission guidelines
• answer all questions completely and correctly
• submit work which is original and, where necessary, properly referenced
• submit a completed cover sheet with your work
• avoid sharing your answers with other students.
Assessment information
i
Information about how you should complete this assessment can be found in Appendix
A of the Hospitality Works Student User Guide. Refer to the appendix for information
on:
• where this task should be completed
• the maximum time allowed for completing this assessment task
• whether or not this task is open-book.

Note: You must complete and submit an assessment cover sheet with your work. A
template is provided in Appendix C of the Student User Guide. However, if your RTO
has provided you with an assessment cover sheet, please ensure that you use that.

5
INSTITUTE
Questions
1. Define the following financial terminology specific to various financial reports.
Term Definition
Resources owned or controlled by a

business that have future economic value.
a. Assets.
Examples include cash, accounts receivable,
inventory, equipment, etc.
Debts or obligations owed by a business.

b. Liabilities. Examples include accounts payable, wages
payable, loans, mortgages, etc.
The owner's equity in a business. Also known

c. Proprietorship.
as owner's equity
Customers who owe money to the business

d. Debtors. for goods or services purchased on credit.
Also known as accounts receivable.
Suppliers or vendors that the business owes

e. Creditors. money to for goods or services purchased on
credit. Also known as accounts payable.
2. List three examples of typical ‘reporting periods’ that may be used by businesses.
• Monthly
• Quarterly
• Annually
3. List three examples of ‘financial years’ that may be used by different businesses.
• January 1 to December 31
• July 1 to June 30

6
INSTITUTE
• April 1 to March 31
4. List five features and functions of accounting software used to manage financial operations.
• Record transactions
• Generate invoices and sales receipts
• Track accounts payable and receivable
• Calculate taxes
• Produce financial statements
• Manage inventory
• Generate reports
• Bank reconciliations
• Budgeting
• Track fixed assets
5. List three uses of financial information and reports in monitoring overall business performance
for an organisation.
• Measure profitability
• Track revenue and expenses
• Identify trends and variances
• Assess liquidity and solvency
• Inform business decisions and planning
• Identify issues and opportunities
• Benchmark performance against competitors
• Meet legal and compliance requirements
6. Explain the following operational or departmental financial activities/terms that organisations

commonly track and interpret in terms of their financial information.
Operational or departmental financial

Explanation
activities
The average dollar amount that each

a. Average customer spends. customer spends per transaction or visit.
Used to measure customer value.
The percentage of sales that originated from

a quotation provided to the customer.
b. Quotations realised to sales.
Measures how effective quotations are at
converting to actual sales.

7
INSTITUTE
Operational or departmental financial

Explanation
activities
A measure of total sales revenue achieved

c. Sales performance. over a period. Used to evaluate the success
of sales activities.
The quantity of inventory items on hand.

d. Stock levels. Tracked to inform purchasing and inventory
management.
7. Name three examples of daily, weekly and monthly transactions that departments or
organisations commonly monitor.
• Daily: Cash sales, credit sales, cash receipts, refunds, wage payments.
• Weekly: Inventory counts, bank deposits.
• Monthly: Rent, loan payments, utilities, insurance, taxes.
8. Explain what the departmental expenditure items listed below refer to when interpreting
financial information.
Name of Expenditure Description
Wages, salaries, and related costs like

a. Labour. superannuation and workers compensation
insurance.
Costs of inventory bought during the period.

b. Stock purchased.
Inventory items scrapped or damaged. An

c. Wastage. expense related to inefficient operations.

8
INSTITUTE
9. Describe what each of the following income descriptors means when interpreting financial
statements or reports.
Name of Income Description
Revenue from entrance fees or cover charges.

a. Covers and gross income.
Used in restaurants, bars, events etc.
Income received based on a percentage of

b. Commission earnings. sales. Used when sales reps earn
commission.
Revenue generated from occupied rooms at

c. Occupancy and gross income.
accommodation providers like hotels.
Total revenue generated by the business from

d. Sales.
selling its products or services.
10. Differentiate between ‘accounts payable’ and ‘accounts receivable’.

Accounts payable refers to amounts owed by the business to its suppliers and vendors. Accounts
receivable refers to amounts owed to the business by its customers
11. Explain the term ‘variance from budget’.
The difference between the actual amount and the budgeted amount for a given account or
business activity. Used to analyze financial performance against forecasts.
12. Outline the main purpose of the following financial reports.
Type of Financial Report Outline of Purpose
Forecasts income, expenses, and cash

a. Budget. flows. Used for planning and cost control.
Tracks cash inflows and outflows. Used to

b. Cash flow. assess liquidity.
Tracks entrance fee revenue. Used in

c. Covers. restaurants, bars, events etc.

9
INSTITUTE
Tracks expenses. Used to analyze spending.

d. Expenditure.
Tracks wage and labor costs. Used to

e. Labour and wages. monitor staff costs.
Measures rooms occupied at

f. Occupancy rates. accommodation venues. Used to monitor
demand.
Tracks inventory and supplies purchased.

g. Purchases. Used to analyze stock spending.
Tracks amounts owed by customers. Used to

h. Receivables. monitor credit sales and collections.
Tracks revenue generated. Used to measure

i. Sales. sales performance.
Tracks inventory quantities and values. Used

j. Stock. for inventory management.
Tracks individual transactions. Provides audit

k. Transactions. trail.
Tracks tax-exempt sales. Needed for sales

l. Transactions exempted. tax reporting.
Tracks number of products sold. Used to

m. Units sold. measure sales volume.

10
INSTITUTE
Compares actual to budget. Measures

n. Variance. performance against plans.
Tracks discarded or damaged inventory.

o. Wastage. Monitors inefficient use of stock.
13. Explain the following terminology in relation to financial record-keeping.
Terminology Explanation
Book containing final accounts that

a. Ledger. summarize transactions from journals.
Break down individual ledger accounts into

b. Subsidiary ledgers. details. E.g., accounts receivable and
accounts payable ledgers.
Books of original entry recording transactions

c. Journals. in chronological order.
Business activities involving transfer of

d. Transactions. money or assets.
Cash received into the business.

e. Receipts.
Cash paid out of the business.

f. Disbursements.
List goods/services provided to a customer

g. Invoices. and amount owed.

11
INSTITUTE
Terminology Explanation
Net difference between cash inflows and

h. Cash flow. outflows over time.
14. Explain what a ‘chart of accounts’ is.
A list of all the accounts or ledgers used by an organisation. Provides a framework for recording
transactions.
15. List the five account categories in the General ledger.
• Assets
• Liabilities
• Equity
• Revenue
• Expenses

12
INSTITUTE
16. Explain the following key elements of accounting.
Key Element Explanation
For every debit there must be an equal and

offsetting credit. Assets increase on debit
a. Basic rules for double-entry accounting. side, liabilities and equity increase on credit
side.
Debits increase asset and expense accounts.

Credits increase liability, equity and revenue
b. Concept of debits and credits. accounts.
17. Explain the difference between the ‘accrual’ and ‘cash’ accounting methods.
Accrual accounting records revenue when earned and expenses when incurred. Cash accounting
records income when received and expenses when paid.
18. Complete the table below by providing information on the topics listed for a ‘Profit and Loss
Statement’.
Topic Information
Summarizes revenue and expenses over a

a. Purpose. period to measure profitability.
By tallying all revenue and expense accounts

b. How these reports are generated. from the general ledger
Sections for revenue, COGS, gross profit,

c. Format. expenses, net income.
May compare current period to previous

d. Features. periods.

13
INSTITUTE
Topic Information
Revenue, expenses, profit.

e. Key information.
19. Complete the table below by providing information on the topics listed for a ‘Balance Sheet’.
Topic Information
Reports assets, liabilities and equity at a

a. Purpose. point in time.
By tallying all asset, liability and equity

b. How these reports are generated. accounts.
Assets on top, then liabilities and equity

c. Format. below.
Classifies by current and noncurrent. Follows

d. Features. accounting equation.
Assets, liabilities, equity.

e. Key information.
20. In relation to record-keeping and accounting explain the purpose of ‘reconciliations.
Used to compare two independent sets of figures and identify discrepancies. Ensures records are
accurate.
21. List three different types of reconciliation other than a bank reconciliation that an organisation
might undertake as part of its business monitoring activities.
• Accounts receivable reconciliation

• Accounts payable reconciliation
• Inventory reconciliation
• Credit card statement reconciliation

14
INSTITUTE
• Petty cash reconciliation
22. Explain how to treat ‘unpresented cheques’ when undertaking a bank reconciliation.
Add them to the bank statement balance, as they reduce the available cash balance.
23. Explain what is meant by ‘bank charges’ and describe how to treat them when undertaking a
bank reconciliation
Fees charged by the bank for services. Add them to the bank statement balance as they reduce
cash.
24. Describe how the listed items must be treated when doing a bank reconciliation.
Items How they must be treated
Add to book balance as they reduce cash per

a. Direct debits on bank statement
bank.
Deduct from book balance as they increase

b. Direct credit on bank statement
cash per bank.
25. Explain the ‘concept of costing’.

Assigning costs to products or services to accurately reflect the resources required and expenses
incurred to produce them.
26. Differentiate between ‘fixed costs’ and ‘variable costs.

Fixed costs remain constant regardless of volume. Variable costs change in proportion to volume.
27. List three accounting requirements that apply to goods and services tax (GST).
• Registering for GST if turnover exceeds threshold

• Collecting GST on taxable sales
• Claiming GST credits on business purchases
• Lodging Business Activity Statements
• Maintaining tax invoices
28. Outline the reporting requirements that apply to goods and services tax (GST).
• Report GST collected and GST paid on Business Activity Statements

• Lodge BAS quarterly or monthly depending on turnover
• Pay net GST to ATO if GST collected exceeds GST paid
• Claim refund from ATO if GST paid exceeds GST collected
• Keep tax invoices to support GST amounts
• Report total sales including GST and GST-free sales

15
INSTITUTE
Assessment Task 2: Project
Information for students
This task requires you to analyse and use financial information and accounting software for a case
study business, resolve discrepancies and interpret and report on operational activity.
You will need access to:
• your learning resources and other information for reference
• a printer and accounting software
• your Financial Data and Reports Pack.

Ensure that you:
• review the advice to students regarding responding to written tasks in the Hospitality Works
Student User Guide
• comply with the due date for assessment which your assessor will provide
• adhere with your RTO’s submission guidelines
• answer all questions completely and correctly
• submit work which is original and, where necessary, properly referenced
• submit a completed cover sheet with your work
• avoid sharing your answers with other students.
Assessment information
i
Information about how you should complete this assessment can be found in Appendix
A of the Hospitality Works Student User Guide. Refer to the appendix for information
on:
• where this task should be completed
• how your assessment should be submitted.

Note: You must complete and submit an assessment cover sheet with your work. A
template is provided in Appendix B of the Student User Guide. However, if your RTO
has provided you with an assessment cover sheet, please ensure that you use that.

16
INSTITUTE
Activities
Complete the following activities.
1. Carefully read the following scenario
You are the manager of a business, called Boho Dreams, in the weddings and
events industry. You have been asked by the manager to complete some of the
financial data entries, review the figures for the previous month (July 20XX) and
then prepare the monthly report for them. Most of the data has been entered for the
past month – you will need to complete the final transactions. You need to submit
the report to the owner, Andrew, within a certain timeframe – your assessor will
provide you with the specific timeframe required.
As you are the manager, you do not need to request approval for any discrepancies
you may resolve.
2. Access and interpret financial information
Access and review the Financial Data and Reports Pack which provides you with
details of the case study along with the following reports:
• Bank statement
• Credit card statement
• Customer invoices
• Bank deposit slip
• EFT slips and summary
Access the accounting software system provided to you by your assessor. Extract
and print the following report and study the information contained within:
• Banking Transactions Report

When reviewing the information, look for:
• Items on the bank statement and credit card statement that have not been
entered yet.
• Any discrepancies between source documents and data from the reports.
Ans:
• Bank statement has a transaction on 18/7 for $280 not yet entered
• Credit card statement has a transaction on 8/7 for $286 not yet entered
• There is a bank deposit slip for $480 dated 31/7 for chair cover rental not
yet entered
3. Process transactions and reconcile discrepancies
Enter the following transactions into the accounting software:

17
INSTITUTE
• Item on bank statement not yet entered.
• Item on credit card statement not yet entered.
• Bank deposit slip amount – this was a cash payment received for chair cover
rental on 31 July 2020 and has not yet been recorded.
• Invoice to Tables and Chairs on 31 July for chair hire $480.52.
• Invoice to Kingscliff Events on 31 July for a Style Package $1,020.00.
• Reconcile any errors found and pass journals accordingly.

Ans:
• 18/7 Bank statement transaction, Dr Chair Covers Income, Cr Bank $280
• 8/7 Credit card statement transaction, Dr Advertising Expense, Cr Credit
Card $286
• 31/7 Bank deposit slip, Dr Bank, Cr Chair Covers Income $480
• 31/7 Invoice to Tables and Chairs, Dr Accounts Receivable - Tables and
Chairs, Cr Chair Hire Income $480.52
• 31/7 Invoice to Kingscliff Events, Dr Accounts Receivable - Kingscliff
Events, Cr Style Package Income $1,020
4. Extract reports
Once you have entered all the above transactions and you are satisfied that this
has been done correctly, extract the following reports for the month from the
accounting software:
• Trial balance
• Bank account transactions report
• Balance Sheet
• Profit and Loss Statement
• Business Activity Statement
• Accounts Payable Summary
• Accounts Receivable Summary

Ans:
 Trial Balance
Trial Balance
 Bank Account Transactions

Bank Account Transactions
 Balance Sheet
Balance Sheet
 Profit and Loss Statement
Profit and Loss Statement

18
INSTITUTE
 Business Activity Statement

Business Activity Statement
 Accounts Payable Summary
Account Payable
 Account Receivable Summary
Account Receivable
5. Develop a report
Develop the monthly financial monitoring report for the owner of the business.
Provide a summary of the month’s activity and your findings about potential impacts
to future operational activity. You may develop a report in your own template or
format.
Include specific information on:
• A summary of sales for the month and performance in relation to the various
streams of revenue
• Average customer spend
• Labour costs
• Amount spent on stock purchased for the month
• Accounts payable trends and information
• Accounts receivable trends and information

Ensure you use correct financial terminology when compiling your report.
Ans:
 Total sales for July were $12,905, down 10% from previous month
 Main revenue streams were chair covers ($4,130), style packages ($4,500)
and chair hire ($3,150)
 Average customer spend was $215 per booking
 Total labor costs were $5,475
 Amount spent on new stock purchases was $3,487
 Accounts payable increased 15% due to new credit terms with suppliers
 Accounts receivable decreased 5% as customers paid outstanding
amounts

19
INSTITUTE
6. Send an email to the owner
Compose an email to the owner and attach your report, along with all the print outs of
each report you have made from the accounting software.
Ensure your email is polite and professional in nature, sent by the correct date and
ask for a reply as soon as possible.
Ans

20
INSTITUTE

21

SITXFIN002 Student Assessment Tasks

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SITXFIN002 Student Assessment Tasks

Uploaded by

Copyright:

Available Formats

Lower Ground 121 Queen Street Campbelltown NSW 2560

CAMPBELL Phone: 0422 092 884 • Email: info@Campbellinstitute.edu.au

Student Assessment Tasks

SITXFIN002 Interpret financial information

SITXFIN002 Interpret financial information Student Assessment Tasks

Assessment Cover Sheet

SITXFIN002 Interpret financial information Student Assessment Tasks

SITXFIN002 Interpret financial information Student Assessment Tasks

Assessment for this unit

Preparing for assessment

Supporting resources: Supporting resources include templates, journals, workbooks and

• Financial Data and Reports Pack (Assessment Task 2)

• submitting assessments • re-assessment guidelines

• assessment appeals • responding to written questions.

SITXFIN002 Interpret financial information Student Assessment Tasks

Information for students

• adhere with your RTO’s submission guidelines

• answer all questions completely and correctly

• submit work which is original and, where necessary, properly referenced

• submit a completed cover sheet with your work

• avoid sharing your answers with other students.

• where this task should be completed

• the maximum time allowed for completing this assessment task

• whether or not this task is open-book.

SITXFIN002 Interpret financial information Student Assessment Tasks

1. Define the following financial terminology specific to various financial reports.

Resources owned or controlled by a

Debts or obligations owed by a business.

The owner's equity in a business. Also known

Customers who owe money to the business

Suppliers or vendors that the business owes

SITXFIN002 Interpret financial information Student Assessment Tasks

6. Explain the following operational or departmental financial activities/terms that organisations

Operational or departmental financial

The average dollar amount that each

The percentage of sales that originated from

SITXFIN002 Interpret financial information Student Assessment Tasks

Operational or departmental financial

A measure of total sales revenue achieved

The quantity of inventory items on hand.

Name of Expenditure Description

Wages, salaries, and related costs like

Costs of inventory bought during the period.

Inventory items scrapped or damaged. An

SITXFIN002 Interpret financial information Student Assessment Tasks

Name of Income Description

Revenue from entrance fees or cover charges.

Income received based on a percentage of

Revenue generated from occupied rooms at

Total revenue generated by the business from

10. Differentiate between ‘accounts payable’ and ‘accounts receivable’.

11. Explain the term ‘variance from budget’.

12. Outline the main purpose of the following financial reports.

Type of Financial Report Outline of Purpose

Forecasts income, expenses, and cash

Tracks cash inflows and outflows. Used to

Tracks entrance fee revenue. Used in

SITXFIN002 Interpret financial information Student Assessment Tasks

Type of Financial Report Outline of Purpose

Tracks expenses. Used to analyze spending.

Tracks wage and labor costs. Used to

Measures rooms occupied at

Tracks inventory and supplies purchased.

Tracks amounts owed by customers. Used to