BSBFIM501 Manage Budgets and Financial Plans: Student Assessment Tasks

This document contains a student's comprehensive response to the assessment tasks for the BSBFIM501 unit, focusing on managing budgets and financial plans. The assessment includes various tasks such as answering written questions on accounting principles, GST, taxation, and superannuation obligations. Additionally, the student undertakes a budget planning project, a project to monitor and control finances, a profit and loss analysis project, and a debtor management project, demonstrating their understanding of financial management processes. The assessment covers a wide range of topics, including double-entry bookkeeping, cash and accrual accounting, and GST reporting, with detailed explanations and practical application of financial concepts. The document provides a complete solution for the assessment, showcasing a strong grasp of the unit's learning objectives.

Student Assessment Tasks
BSBFIM501 Manage budgets and financial plans
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1. Table of Contents
1.Table of Contents...................................................................................................................... 2
2.Assessment Information............................................................................................................ 3
3.Assessment Instructions............................................................................................................ 5
4.Assessment Task 1: Written Questions ....................................................................................7
5.Assessment Task 1 Instructions................................................................................................8
6.Assessment Task 1 Checklist.................................................................................................. 11
7.Assessment Task 2: Budget planning project..........................................................................13
8.Assessment Task 2 Instructions ............................................................................................. 15
9.Assessment Task 2 Checklist.................................................................................................. 18
10.Assessment Task 3: Monitor and control finances project.....................................................19
11.Assessment Task 3 Instructions ........................................................................................... 21
12.Assessment Task 3 Checklist................................................................................................ 22
13.Assessment Task 4: Profit and loss review project................................................................24
14.Assessment Task 4 Instructions ........................................................................................... 25
15.Assessment Task 4 Checklist................................................................................................ 26
16.Assessment Task 5: Debtor management project.................................................................28
17.Assessment Task 5 Instructions ........................................................................................... 30
18.Assessment Task 5 Checklist................................................................................................ 32
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2. Assessment Information
The assessment tasks for BSBFIM501 Manage budgets and financial plans are included in this Student
Assessment Tasks booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, the student must complete all of the assessment tasks
satisfactorily.
Assessment Plan
Assessment Task Overview
1. Written questions Students must correctly answer all questions.
2. Budget planning project Students must complete a budget template and participate in
a meeting to discuss the budget. They must then present the
budget to their team.
3. Monitor and control finances project Students must review budget figures as part of a monitoring
process and report on these.
4. Profit and loss analysis project Students must review financial performance from a profit and
loss account
5. Debtor Management project Students must review and evaluate financial management
processes
Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for
clarification if you have any questions at all.
When you have read and understood this unit’s assessment tasks, print out the Student Assessment
Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.
Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.
Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per your Alpha
Institute (Australia’s) assessment appeals process.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Naming electronic documents
Students are directed to name documents logically.
Each should include:
Course identification code
Assessment Task number
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Document title (if appropriate)
Student name
Date it was created
For example, BSBFIM501 AT2 Revised Marketing Budget Joan Smith 20/04/18
Additional Resources
The following resources have been added to appendix.
Assessment Task 2
Marketing Budget Template
Finance Policy and Procedures
Assessment Task 3
Marketing Expenditure
Assessment Task 4
Profit and Loss Account
Assessment Task 5
Aged Debtors Report
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3. Assessment Instructions
Each assessment task in this booklet consists of the following:
Assessment Task Cover Sheet
This must be filled out, signed and submitted together with your assessment responses.
If you are submitting hardcopy, the Cover Sheet should be the first page of each Assessment’s submission.
If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit
the file.
The Assessment Cover Sheet will be returned to you with the outcome of the assessment, which will be
satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your
assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your
assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per
your Alpha Institute (Australia’s) re-assessment policy.
Depending on the task, this may include
resubmitting incorrect answers to questions (such as short answer questions and case studies)
resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
redoing a role play after being provided with appropriate feedback about your performance
being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily
completed the first time, after being provided with appropriate feedback.
Assessment Task Information
This gives you:
a summary of the assessment task
information on the resources to be used
submission requirements
re-submission opportunities if required
Assessment Task Instructions
These give questions to answer or tasks which are to be completed.
Your answers need to be typed up using software as indicated in the Assessment Task Instructions.
Copy and paste each task’s instructions into a new document and use this as the basis for your assessment
task submission. Include this document’s header and footer.
If you are submitting electronically, give the document a file name that includes the unit identification
number, the task number, your name and the date.
Checklist
This will be used by your assessor to mark your assessment. Read through this as part of your preparation
before beginning the assessment task. It will give you a good idea of what your assessor will be looking for
when marking your responses.
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4. Assessment Task 1: Written Questions
Task summary
You need to answer all of the written questions correctly.
Your answers must be word processed.
Required
Access to learning materials
Computer and Microsoft Office
Access to the internet
Timing
Your assessor will advise you of the due date of this assessment.
Submit
Answers to all questions
Assessment criteria
All questions must be answered correctly in order for a student to be assessed as having completed the
task satisfactorily.
Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed your assessor will explain why and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt
with unfairly or have other appropriate grounds for an appeal.
Students are encouraged to consult with their assessor prior to attempting this task if they do not understand
any part of this task or if they have any learning issues or needs that may hinder them when attempting any
part of the assessment.
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Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell
you how you should answer the question. Use the definitions below to assist you to provide the type of
response expected.
Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in in detail, and identify
important points and key features. Generally, you are expected to write a response one or two paragraphs
long.
Compare – when a question asks you to compare something, you will need to show how two or more things
are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected
to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things
are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write
a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or
features, and express some form of critical judgement. Generally, you are expected to write a response one
or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities
or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments
for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should
provide a detailed response with key points and features and provide critical analysis. Generally, you are
expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something
happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe
the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information
in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally,
you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the
main points. Generally, you are expected to write a response a few sentences long.
5. Assessment Task 1 Instructions
Provide answers to all of the questions below:
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1. Explain the basic principle of double entry bookkeeping.
The basic principle reflects that transactions are recorded with both aspects that is debit and credit. In other
words for every entry there is a debit and credit effect.
2. Describe the principle of cash accounting and one advantage and one disadvantage of this method
of accounting.
It is the method in which the payment and the receipts are been recorded when they are actually been paid
and received.
 Advantage: Cash accounting method is counted as simplest method where only cash transactions
is been recorded.
 Disadvantage: Chances of discrepancies are more as only cash related transactions are entered
so business can get it involved in some unfair practices.
3. Describe the principle of accrual accounting and one advantage and one disadvantage of cash
accounting
It is the concept that is to be recorded in period within which it actually occurs instead of the period within
which the cash flows regarding it occurs.
 Advantages: This method takes into consideration both cash as well as credit transaction which in
turn gives a clear picture of the company's records.
 Disadvantage: It requires more and more estimation and judgement as compared to cash basis.
4. Explain the two accounting principles on which the calculation and reporting of deprecation is
based.
 Cost principle- It refers to the principle where amount of depreciation expense that is reported on
P&L and an asset amount on balance sheet must be on the basis of historical cost that is original
cost.
 Matching principle- This principle states that cost of asset allocated in terms of depreciation
expense over useful life of asset. This means that asset's cost must match with revenues earned.
5. Identify and explain three key features of A New Tax System (GST) Act 1999.
 Dual GST
 computing GST based on the method of invoice credit
 Uniform process for collecting GST
6. Identify and then explain the four main taxation and superannuation obligations for a business.
Briefly discuss each obligation.
 Withholding tax from the report and the wages
 Paying super, at least on quarterly basis for the eligible employees
 Reporting and paying the fringe benefits taxes
 FBT obligation
7. According to GST legislation, list four items that do not attract GST.
 Dairy products
 vegetables
 coffee
 Tea
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8. Explain the process by which a business reports GST to the Australian tax office.
 Using the default simpler BAS
 using full reporting technique
 By making use of GST instalment method
9. What is the penalty rate to be applied if a supplier does not provide an ABN?
In this case he has to pay for the highest tax rate as the penalty payment.
10. A non-profit organisation needs to register for GST after it has a turnover of more than how much?
Until and unless their projected annual turnover exceeds AUD 150000 or greater than this amount excluding
the GST.
11. List the key information that must be included on a tax invoice for sales of $1,000 or more.
Tax invoice needs to include at least 7 pieces of an information that is to be valid. For tax invoice in respect
of sales amounting to $ 1000 or more, it is important to shows the identity of buyer with its ABN.
12. Identify and explain three types of financial statements and their purpose.
 Profit and loss statement – It is the report that stores information relating to all kinds of income
and the expenditures of an enterprise. The main purpose of framing this statement is evaluate
financial performance of the firm.
 Balance sheet- It refers to the statement that is considered as the final output for all final reports
and records for assets and liabilities of the company. The major purpose of this report is analysing
financial position of the company.
 Cash flow statement- Under this statement all the cash transactions are shown in business. In
order to ascertain cash position, this statement is counted as most suitable.
13. Describe the type of entity that is required to have financial reports audited.
All the companies other than the small proprietary firms, registered scheme, disclosing enterprise must have
to audit its final reports.
14. Explain the purpose of a financial audit and auditor’s report.
The aim of auditors report is documenting reasonable assurance that the financial statement of the company
remains error free. Along with the balance sheet, P&L, Directors report and an auditors report make up as
the part for the statutory accounts of the company.
15. Describe why companies may choose to develop budgets.
By creating budget, manager can hold an organisation accountable relating to its expenses, cost etc. It is
been served as the measurement tool which helps in visualising enough cash in operating the growth.
16. Explain the main steps in the budgeting process.
 Setting goals
 Identifying the income and the expenses
 separating the needs and the wants
 Designing the budget
 Putting the plan into an action
 Seasonal expenses
 Looking ahead
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17. List 5 ways to improve cash inflow and give examples.
The main five ways that could be adopted for improving the cash flow are as follows-
 Reevaluating pricing of the product
 Replacing inventory and an old equipment
 Re-negotiating the long term contracts
 Developing incentives for the early payments and the penalties for the delayed payment
 Improving marketing
18. Explain the use of electronic spreadsheets in developing budgets and give two of their key features.
Use of an electronic spreadsheets means that contains automatic formulas with graphs and the charts so
that it becomes easy in producing duplicates with the electronic spreadsheets. It helps in enhancing
accuracy, speed and an efficiency in the budget.
19. Explain three key principles relating to the management of a chart of accounts.
The 3 main principles for charting the account are as follows-
 Debiting the receiver, crediting the giver
 Debit what comes inside and credit what goes outside
 Debiting all the expenses and the losses and crediting all the income and the gains
20. Explain the purpose of a profit and loss statement and give two of its key features.
The purpose of P&L account is to facilitate the financial earnings performance of an enterprise over the
particular time period.
The features are as follows-
 It accounts for recording income and the expenses occurred from the business activities.
 It provides for computation of the profits earned by the firm.
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6. Assessment Task 1 Checklist
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Student’s name:
Did the student provide a sufficient and
clear answer that addresses the
suggested answer for:
Completed
successfully
Commen
ts
Yes No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 18
Question 19
Question 20
Task Outcome:
Satisfactory  Not
Satisfact
ory 
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