Financial Accounting Reporting and Analysis
Added on 2020-04-15
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FNSACC404 Prepare financial statements for non-reporting entitiesAssessment 1Part A – Written questionsPart B – Practical tasks Student Name: StanAvalon Student Number: XXXX Assessment Number: 32290/01
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Assessment 1FNSACC404 Prepare financial statements for non-reporting entitiesInstructionsOnce you feel confident that you have covered the learning materials for this unit, you are readyto attempt this assessment. Write your assessment in a commonly used software program suchas Microsoft Word, or you can download a Microsoft Word copy of this assessment from the relevant Study Period of your course in OpenSpace. To help Open Colleges manage your assessment, please use the following file naming convention when you save your Microsoft Word document. Your file should be named and saved to your computer’s hard drive using your [student number]_[assessment number].doc. For example 12345678_22129_01.docAssessment submissionWhen you are ready to submit your assessment, upload the file in OpenSpace using the Assessment Upload links in the relevant Study Period of your course. Uploading assessments in OpenSpace will enable Open Colleges to provide you with the fastest feedback and grade on your assessment. If you upload your assessment in OpenSpace you do not need to use an Assessment Cover Sheet. Alternatively, you can print and post your assessment to: Open CollegesPO Box 1568Strawberry Hills NSW 2012 If you are submitting the assessment by post, please ensure that you use the Open Colleges Assessment Cover Sheet (available in Support in OpenSpace). Students who submit written assessments by post or via OpenSpace, should allow up to five days from receipt by Open Colleges for marking and return.It is important you keep a copy of all electronic and hardcopy assessments submitted to Open Colleges.Page 3 of 65
Assessment DescriptionThis unit describes the skills and knowledge required to develop a range of commonly required financial reports for entities that do not have a statutory duty to file financial reports with government agencies and regulators.Assessment TasksAssessment numberAssessment type and methods32290/01Part A: Written QuestionsWritten questions consist of the following assessment method:-Written responses to assess underpinning knowledgePart B: Practical QuestionsPractical questions consist of the following assessment method:-Evaluating an integrated activity which combines elements of the competency.Page 4 of 65
Marks for this assessment task will be awarded as follows:QuestionMarks TotalWeightingAssessment ResultsMarksWeighted%Part A Q 1-143810%Part B17020%22015%32015%44020%52020%Total Marks208100%Convert to a %:Total A + B / 208 x 100Grades will be awarded as follows:GradeMarks converted to %Pass(meet competency requirements per the competency evaluation below)50-64%Credit65-74%Distinction75-84%High Distinction85-100%Page 5 of 65
Part A - Written questions1.What do we mean by “Accounting”?Accounting is the process used for the collection, processing and communicationOf financial information.It does this by recording, analysing, interpreting and recording data from transactions.2.List three types of non-reporting entities.A Registered CharitiesB. Social Clubsc. Health organisations3.List three pieces of legislation that not-for-profit organisations need to adhere to?A.The goods and sevices tax actB.The income tax assessment actC.The privacy act and its ammendments4.a) Define the goods and services tax (GST)?The GST is an indirect tax on private consumption levied at every stage of production and distribution.b) Who pays and who collects GST?Paid by consumers and collected by businesses registered for GST.c) What is the name of the statement that records GST?Business activity statement [BAS]d) At what level of earning do the following organisations have to register for GST?(i) sole trader$75,000 excluding GST (ii) not-for-profitPage 6 of 65
$150,0005.What legislation regulates tax agents and who administers this?The tax agent services act 2009 and this is regulated by the Tax Practitioners Board.6.a) Why is it important to have internal controls?It is important to have internal controls to reduce the risk of mistakes and to ensureThat financial plans are completed accurately.b) Why is it particularly important for not-for-profit organisations to have internal controlIt is important because most of the accounts are prepared by volunteers whooften do not have a good knowledge of accounting procedures.7.a) According to the policy and procedures manual in Appendix A of this assessment, list the three categories or classifications of cash flows in a cash flow statement. 1. cash flows from operating activities 2. cash flows from investing activities 3 .cash flows from financing activitiesb)According to the policy and procedures manual in Appendix A of this assessment, who is responsible for checking accuracy, verifying and authorising the financial reports? The Chief financial officerc)What process should be undertaken prior to the preparation of any financial reports to ensure that reporting is in line with original data and provide an example?Balance day adjustments to ensure correct information is recorded.Page 7 of 65
d)List three expenses of a business not included in a cash flow statement.1.Depreciation2.Bad debts3.Discounts allowed8.List three types of ratios and state what each tells us about a business.1.Income statement ratios which tells us about the businesses profitability. Eg. Income statement ratio gives us the profitability ratio 2.Balance sheet ratios which tells us about the businesses liquidity. Eg. Balance sheet ratio is the liquidity ratio. 3.Combined income and balance sheet ratios which tell us about the Businesses activity ratios. Eg.combined income statement and balance sheet ratios give us The business activity ratios..9.a) What is a partnership?A partnership is the relation between two or more persons carrying on business with a view to making a profit.b) List three advantages and three disadvantages of partnerships compared with sole traders. Advantages4.Greater availability of capital.5.taxation advantages6.shared workload Disadvantages 1.Profits are shared 2. No separate legal entity 3. Partners are jointly liable for the debts of the partnership.Page 8 of 65
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