BSB61015 Advanced Diploma in Leadership and Management (doc)

T-1.8.1
Details of Assessment
Term and Year 2, 2017 Time allowed Weeks
Assessment No 1 Assessment Weighting 100%
Assessment Type Portfolio of
Due Date Week Room TBA
Details of Subject
Qualification BSB61015 Advanced Diploma in Leadership and Management
Subject Name Financial Management
Details of Unit(s) of competency
Unit Code (s) and
Names
BSBFIM601 Manage finances
Details of Student
Student Name
College Student ID
Student Declaration: I declare that the work
submitted is my own, and has not been
copied or plagiarised from any person or
source.
Signature: ___________________________
Date: _______/________/_______________
Details of Assessor
Assessor’s Name
Assessment Outcome
Results Competent Not Yet Competent Marks /
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Student Declaration: I declare that I have been
assessed in this unit, and I have been advised of my
result. I am also aware of my right to appeal and the
reassessment procedure.
Signature: ____________________________
Date: ____/_____/_____
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have provided
appropriate feedback
The student did not attend the feedback session.
Feedback provided on assessment.
Signature: ____________________________
Date: ____/_____/_____
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T-1.8.1
Purpose of the Assessment
The purpose of this assessment is to assess the
student in the following learning outcomes:
Competent
(C)
Not Yet Competent
(NYC)
plan for financial management
read and review profit and loss statements, cash
flows and aging summaries
prepare, implement and revise a budget which aligns
with the business plan, is based on research and
analysis of previous financial data and cash flow
trends, and meets all compliance requirements
contribute to financial bids and estimates
establish a budget and allocate funds in accordance
with statutory and organizational requirements
communicate with other people including reporting
on financial activity and making recommendations,
identifying and prioritizing significant issues,
ensuring managers and supervisors are clear about
budgets
analyze the effectiveness of existing financial
management approaches including reviewing
financial management software, managing risks of
misappropriation of funds, ensuring systems are in
place to record all transactions, maintaining an audit
trail and complying with due diligence
Assessment/evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A student
can only achieve competence when all assessment components listed under “Purpose of the assessment”
section are recorded as competent. Your trainer will give you feedback after the completion of each
assessment. A student who is assessed as NYC (Not Yet Competent) is eligible for re-assessment.
Resources required for this Assessment
 Computer with relevant software applications and access to the internet
 Weekly eLearning notes relevant to the tasks/questions
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be improved.
You will be provided with feedback on your work within two weeks of the assessment due date. All other
feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps
in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be
deemed competent for this unit of competency.
 If you are not sure about any aspects of this assessment, please ask for clarification from your
assessor.
 Please refer to the College re-assessment for more information (Student Handbook).
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T-1.8.1
FINANCIAL MANAGEMENT: ASSESSMENT
WEEK 2 (20 marks)
ASSESSMENT ACTIVITY: SHORT ANSWER RESPONSES
1. Describe at least one (1) business that is profitable and explains why you think it is enjoying
financial success.
A business that is profitable is YouTube channel. The business has been enjoying financial success
these days because of various subscribers and views.
2. While the evidence suggests otherwise, there is a common view that many new businesses fail
within the first year of operation. Why do you think a new business might not succeed?
There are many reasons for the failure of a new business in its first year of operation. Some of the
reasons can be :
 No differentiation in the market
 Not customer oriented
 Not able to communicate value propositions
 Leadership breakdown
 Wrong strategy
3. Explain the following fundamental accounting concepts:
 Business Entity Concept
According to this concept, the transactions associated with the business shall be recorded
separately from its owners or other businesses.
 Dual Aspect Concept
According to this concept, every transaction has a double effect and shall be recorded on two
different accounts.
 Money Measurement Concept
According to this concept, every transaction that is recorded shall be measured in terms of money.
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4. Explain the following fundamental accounting concepts:
 Objectivity Concept
According to this concept, it states that the financial statements in an organization shall always be
based on some solid evidence.
 Going Concern Concept
It implies that the business will continue its operations in future and will not discontinue its operations
for many reasons.
 Periodicity Concept
According to this concept, the accountants will report the net income and cash flows of the company
in each accounting period.
5. Explain the following fundamental accounting concepts:
 Cost Concept
This concept implies that the assets shall be recorded at the cash amount at the time when they are
acquired.
 Conservatism Concept
According to this principle, the liabilities and expenses are recognized as soon as possible as there
is
uncertainty about the outcome but the revenues are recognized only when they are received.
 Materiality Concept
According to this concept, the important matters in accounting shall be disclosed and the trivial
matters are disregarded.
6. Explain the following fundamental accounting concepts:
 Realisation Concept
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According to this concept, the revenues can be recognized only when
the services for the same are rendered or goods delivered.
 Matching Concept
In general, this concept means that the expenses are matched with the incomes that are generated
from these expenses.
 Full Disclosure Concept
It requires the company to disclose all the important information related to the company so that the
people associated with the company can make informed decisions.
7. Provide four (4) examples of investment decisions

 Investment in R&D (research and development)
 Investment in plant and machinery
 The decision of entering a new market
 The takeover of a company
8. Provide five (5) examples of financing decisions
 Capital investments
 Debt financing
 Revenue from sales
 Paying for capital projects
 Equity financing
9. Provide three (3) examples of financial management decisions.
 Issuing new credit for paying old debts
 Opening new store
 Extending credit to customers
10. Explain the difference between financial accounting and management accounting.
Financial accounting Management accounting
Reports on the results of entire business It is reported at a detailed level like a profit of a
product or product line.
Pays less or no attention to the overall system It pays attention to small issues and finding ways
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to sort it out
Historical oriented Future-oriented
11. Provide five (5) examples of ratios that can be used for analysis and what they mean
 Liquidity ratios: focuses on the ability of the firm to pay short-term debts.
 Debt Ratios: focuses on the ability of the firm to meet its long-term obligations.
 Turnover ratios: measures the firm’s efficiency for using its assets for the production of
sales.
 Profitability ratios: focuses on the ability of the firm to generate the profits.
 Market value ratios help in knowing or studying the market value of the firm.
12. Provide the formulas for the following ratios:
 Gross Profit
Gross profit= Revenue-COGS/ total revenue
 Net Profit
Net Profit =Revenue-(operating expenses +cogs and +tax and interest)
 Inventory Turnover Ratio
Inventory Turnover Ratio = COGS/Average Inventory
 Debt to Assets Ratio
 Debt to Assets Ratio = Total Liabilities / Total Assets
 Return on Investment
Return on Investment = gains –investment costs/investment costs
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