Manage Financial Resources

BSBFIM801 MANAGE FINANCIAL RESOURCES

Contents
Assessment 1...................................................................................................................................3
Assessment Task 2.........................................................................................................................14
PART A.....................................................................................................................................14
PART B.....................................................................................................................................16
PART C.....................................................................................................................................16
PART D.....................................................................................................................................17
PART E......................................................................................................................................18
PART F......................................................................................................................................19
REFERENCES..............................................................................................................................21

Assessment 1
1:
Revenue principle
This states that one only should record the revenue that earned, not relates the cash is collected.
For an example, snow lowing finishes the lowing of the company and lots of standard fee such as
$100 ((Wiersma, Lipworth and Rodwin, 2018)). This could be recognizing the revenue that
immediately realized upon the completion of the lowing and did not expect the payment from the
customer for many weeks. This concept basically helps in incorporating into the accurately basis
of accounting. In such cases the services that must be recognize an increment of advance
payment in each of the four months of the year that is covers in the agreement so as to reflect in
the earning of the payment.
Expense principle- This principle relates that expenses must be recognize in the similar period of
the market efficiency in which it relates. If the it was not including the expense that were
incurred in terms of expenditure, then it related to the expenses. For example, company pays
$100000 for the merchandise, that need to sell in the following months for $150000. In this
expenses principle $100000 should not be recognize as expenses until the following months, then
its related to that recognize.

The Matching Principle
Matching principle is about which is element for accounting principle which needs expenses
incur it has record for that period when it incurs not matter when receive. (Reza and Bromfield,
2019). This principle helps for knowing that businesses must incur expenses for earn revenues.
The principle is including for core for accrual basis of accounting and adjusting entries. It is
element for Generally Accepted Accounting Principles (GAAP). The matching principle is about
which is for cause and effect relationship. In context to matching principle, if there’s no cause
and effect relationship, accountant will charge cost for the expense immediately.
The Cost Principle
The cost principle is element for accounting principle which need assets, liabilities, and equity
investments for views financial records at their original cost. It is necessary for an asset’s value
to converge for historical cost; however, because cost principle which is element for accounting
principle views which financial records should not be adjusted, businesses should always follow
necessary process for account for any changes. Appreciation is about increase for the value of
asset. Appreciation is about which is treat as gain and the difference for value should be record
for ‘revaluation surplus’. For example, businesses purchase office for £100,000 for 2012.
The Objectivity Principle
The Objectivity Principle is quite essential to be applied because it helps in the subjective
measurement of the different types of values (Mongelli, Ramus and Rimac, 2019). Thus the
verifiable data, the verifiable data should be used in a right manner so that the application of this
principle can be made. These basic principles state that accounting involves a lot of assumptions
and thus it becomes important that these assumptions can be considered. UAB offers different
types of degree programs which are helpful for the students so that they are able to make sure
that they can use these programs in the real world.
2. Financial statements
Financial statements are quite helpful in ensuring that the overall level of analysis and
interpretation is done so that the conclusions and recommendations can be drawn properly
(Zietlow, Seidner and O'Brien, 2018). The use of Financial Statements can be very helpful

because by making their use the overall level of financial decisions can be taken highly
effectively and efficiently (e.g. a month or a year). Thus the use of Financial Statements like
Balance Sheet and Cash Flow can be made so that the conclusions and recommendations can be
drawn.
The three financial reports are intertwined and interdependent. The financial statements is not
presented on a cash basis, which ensures that accounting rules like sales identification, matching,
and accruals will cause the financial statements to vary significantly from the company's
financial statement. There would be no cash flow other than investors' equity and cash if a
business conducted its annual statement completely on a cash basis (i.e., no deferred revenue,
nothing invested, etc.).
The growth of the financial statement is due to the development of the income statement using
accounting standards (Edwards Jr and Hall, 2018).
Net Income & Retained Earnings
The profit and loss account statement are linked to net earnings from of the end of the accounting
period. It feeds into retained profits on the financial statements, and it is the baseline for the
funds from understanding of the business on the financial statement.
Financing
This is a difficult aspect in connecting the three claims and necessitates the use of alternate
calendars. Funding events like issuing loans have an effect on all three accounts: interest cost
occurs on the net income, the total amount of money owing occurs on the financial statements,
and the adjustment in the debt full amount occurs mostly on working capital comment's money
from financing column.
Cash Balance
This is the last step in tying the financial reports together. When both of the aforementioned
elements are correctly related, the amount of cash from sales, cash from borrowing, and cash
from lending is applied to the preceding month close cash position on the income statement, as
well as the effect is the reporting system closing cash position.

How Will Financial Reports Be Linked for Monetary Modeling?
It's important to be able to connect the three measures easily while creating a financial template
in Excel. There seem to be a few simple steps to follow in which to do this:
For any of the three financial accounts, enter at least 3 years of cumulative accounting
transactions.
Calculate the business's drivers/ratios for the previous year.
Make predictions about what the future drivers will be.
Following the concepts discussed above, build and link the financial statements.
3.
a) Written correspondence- Written communication refers to any communications that take place
in the written language. Skill is communication in any undertaking that requires more than one
human. There was a miscommunication. If there is an official declaration or a significant number
of viewers, this is successful.
Oral conversation is the exchange of ideas with others through the use of words. As a result, it
may include both spoken and written correspondence (Prokopenko and Grigor, 2018). Many
individuals, though, use this term solely to describe speech. This is a method of communicating
that is used informally. Skills are a great link between children's successes in both the academic
and commercial realms. Have you ever been afraid or nervous before going to a planned staff
meeting or talking in front of a group? Knowing when to use verbal language and honing your
oral skills will help you succeed in your career at any point.
They try to develop new varieties of oral letters in response to calls for creativity. Staff in
displaced countries can see and communicate to each other using video intercoms and video sets,
which incorporate audio and video. Visual transmissions (audio communications that can be
conducted online) and Internet telephony (VoIP), that enables visitors to interact and over
Internet while stay away of phone levels, are two other common forms of oral communication.
Skype is an example of voice-over-internet-protocol (VoIP).