Assessment Instructions

BSBFIN501 AT1 Knowledge Questions v1

TO THE STUDENT

To achieve competency for the unit BSBFIN501 you are required to have a satisfactory outcome for four assessments, AT1 Knowledge Questions, AT2 Portfolio Tasks, AT3 Negotiated Report and AT4 Practical Tasks.

This Assessment consists of five knowledge questions addressing accounting and budgeting understanding.

There are five tasks to complete:

Task 1 Accounting Principles

Task 2 Budgeting Concepts

Task 3 Reporting Requirements

Task 4 Management Principles

Task 5 Budget Identification

Allowable Materials

Blackboard (Learning Content) will include the following: Weekly Readings, Class notes, and Weekly Activities.

Text: Rumble: Manage Budget and Financial Plans, Cengage Australia, Ed 5

Access to the simulated business South Metro Business Solutions (SMBS) Financial Policies and Procedures, and other SMBS documentation via Blackboard LMS

Required Resources

Computer with:

Internet access

Word processing software

Access to Learning Management System (LMS)

Reasonable Adjustment

In some circumstances, adjustments to assessments may be made for you. If you require support for literacy and numeracy issues; support for hearing, sight or mobility issues; change to assessment times/venues; use of special or adaptive technology; considerations relating to age, gender and cultural beliefs; format of assessment materials; or presence of a scribe you need to inform your lecturer.

Assessment Submission

All questions/activities must be attempted

This is an unsupervised assessment that needs to be completed outside of class. This is an individual open book assessment, where online research and access to your textbook is permitted.

To verify the authenticity of your assessment, your lecturer may ask questions to substantiate it is your own work. You will only be verbally questioned on some of the tasks and questions with this assessment.

The answers to assessment questions are based on your text and internet research.

You must answer all questions.

An individual response is required for all tasks and questions.

Reference all material derived from elsewhere.

Written responses should be in a Word document.

Include the question numbers and the full question as a heading above your answer.

Follow SMBS document formatting guidelines.

Guidance and clarification on the assessment is available from your lecturer.

To be deemed satisfactory for this Assessment all Assessment Tasks need to be completed correctly.

Final documentation is to be uploaded to the appropriate area in the Blackboard course created for this unit.

If you are marked as NYS (Not Yet Satisfactory) on your first attempt, you will be provided with another opportunity to re-attempt the assessment.

Assessment contents

This Assessment requires you to complete the following:

Tasks 1-5

These tasks consist of written answers to questions to confirm your knowledge in relation to the unit BSBFIN501Manage Manage Budgets and Financial Plans.

You are required to undertake research for each task.

All questions and any subparts within a question must be answered

Instructions: In your role as the Budget Consultant, you report directly to the Budget Manager (BM) of South Metro Business Solutions (SMBS). As a part of your role, you are often delegated tasks from the BM to assist them with the general management of the business. The following tasks are based on a simulated business where you will be asked to respond to different scenarios faced within the business.

Each day when you get to the office you start your day by answering any emails that come through overnight. You have just sat down at your desk; the follow messages have come to your inbox and require your attention.

For each your responses, undertake research and provide short answers for the following five (5) questions.

Task 1.

To: Sam@smbs.com.au
From: Marketing@smbs.com.au

Subject: Help with accounting questions.

Good morning, there have been some questions from the team trying to understand a few accounting principles, Thomas has referred me to you. When you have a moment could you help explain the following:

Our Profit and Loss Statement shows a marketing expense of $5,500 but when I look at the money spent from our bank account for advertising it only shows $4,700. I know this has something to do with Cash Accounting and Accrual accounting, can you tell me how they work?

When I looked at our Balance Sheet, the value of our motor vehicles shows $110,000 which consists of the two Toyota Rav 4’s that were bought three years ago. Why aren’t they listed at the value they are worth today? Finance said this was because of the historical cost concept. What does that mean?

On the 30th of June we purchased some advertising on Google, however we did not actually make any payments on that account until 5 July. When I look at our advertising expenses, I can see that these purchases showed up last financial year and not when we paid it this year? Was the matching principle used by the finance department? If so, can you tell me more about this principle?

When we purchased our Apple laptops it is assumed that they would be able to service any warranty issues if needed. I was told that Apple is trading as a “Going concern.” Can you explain this principle a little better?

Thank you, I look forward to hearing your responses.

Regards.

Task 2.

To: Sam@smbs.com.au
From: BudgetManager@smbs.com.au

Subject: Budgeting team meeting

Hi Samantha,

As discussed last week, I have asked you to lead the next budgeting team meeting. As some of the members are new, it would be a good idea to ensure each member understands the budgeting a little better.

Before the meeting, please prepare a meeting brief for my review. I would like to read responses to the following topics. This will help me feel more comfortable with what will be shared at this session.

Below is the outline of the topics on which we will be touching at the next meeting.

Agenda

Principles of budgeting will be explained.

How budgets impact financial statements such as the Cash Flow Statement and Profit and Loss.

Examine and explain Profit and Loss and Cash Flow Statements. What are their key elements and what are they communicating to the user?

Ledgers and their importance to budgeting.

Why a business would use electronic spreadsheets for budget formation.

Which budgets are impacted by the Goods and Services Tax Act (GST) and how does GST work?

Thanks again for your help and assistance with the next meeting.

Warm Regards

Task 3.

To: Sam@smbs.com.au

From: Sales@smbs.com.au

Subject: Reporting Requirement

Hello,

We recently hired a new salesperson who moved from overseas. When they looked at our invoices and they noticed GST is being charged. We tried to explain to what GST is to them, but they are still confused. If we can pass it onto them in writing, it should make more sense.

When you have moment can you explain GST requirements? I recommend using the Australian Taxation Office (ATO) website at https://www.ato.gov.au/Business/, you should be able to find the information you need. What are taxable supplies and GST free goods? How do we report these figures to the ATO?

Additionally, can you explain to them the record keeping requirements set out by the ATO? I was not able to tell him from memory. Your help with this matter would be appreciated. I wanted to say that we need to keep them for a number of years, but do not remember how long.

Finally, they have been asking about record keeping requirements regarding their wages. While this question might be better suited for HR, a well referenced response might address their immediate concerns.

I understand that this is not going to be a short answer, please feel free to discuss and unpack as needed. It might be good to reference where you found this information so they can look it up later if they need more information.

Thank you.

Task 4.

To: Sam@smbs.com.au

From: BudgetManager@smbs.com.au
Subject: Managing Teams

Hi Sam,

Sorry for all the message today, it has been busy around the office.

It has come to my attention that there are some conflicts within the budget committee; specifically, between the Sales department and HR department. In order to meet our strategic goals, the Sales department has initiated a departmental plan that involves the recruiting of 2 new staff members. This plan however contradicts the HR department’s plan to withhold recruitment for the next 12 months.

Next Friday I would like to get a meeting locked in with the budget committee, but I am tied up with other work obligations. Can you kindly put together an agenda which outlines several key principles which enables effective work teams? A short discussion on why these principles are important to consider would be welcomed. Additionally, within the agenda, I would like to see detailed discuss on conflict resolution principles. Ensure that your response covers identification of operational tasks and activities as they relate to organisational goals and objectives.

Hopefully the training will help the sales team become more effective going forward.

Warm regards,

Task 5.

To: Sam@smbs.com.au

From: Sales@smbs.com.au

Subject: Budget Types

Hi Sam,

One of our clients has approached our team and requested information on budgets and financial plans. With the long weekend coming up, it would be ideal if we can get an answer to the client before then.

It might be more time effective to help the client by researching SMBS’s policy and procedures surrounding budgeting and using that in your responses. This could save time researching the topic.

The client needs help outlining the different types of budgets that are available to them. As you can imagine, not knowing a great deal about budgeting can be confusing. Can you outline and explain the different types of budgets that we use at SMBS and why they are important? Try not to be too technical, it should be easy to understand for someone who does not know a lot about budgeting.

Finally, it would be good you aim to relate these budgets back to financial plans. How do they link to a Profit and Loss Statement or Balance Sheet?

If you have any questions, just let me know.

Regards,