Comprehensive Finance & Budgeting Solutions: MCQ and Tasks

This assignment solution covers various aspects of managing finances and budgets, including multiple-choice questions (MCQs) and practical tasks. The MCQs address key concepts such as financial statements, budgeting principles, statutory requirements, and risk management. The tasks involve analyzing financial data, preparing budgets, identifying variances, and recommending improvements. The document provides detailed answers and explanations for each question and task, offering insights into financial analysis, resource allocation, and effective financial management practices. The solutions also cover topics like GST calculations, bilateral trade agreements, and the importance of internal controls. Desklib provides access to this and many other solved assignments for students.

MANAGING FINANCES AND BUDGETS 0
MANAGING FINANCES AND BUDGETS

MANAGING FINANCES AND BUDGETS 1
Table of Contents
MCQ...........................................................................................................................................3
Question 1..................................................................................................................................3
Question 2..................................................................................................................................3
Question 3..................................................................................................................................3
Question 4..................................................................................................................................3
Question 5..................................................................................................................................4
Question 6..................................................................................................................................4
Question 7..................................................................................................................................4
Question 8..................................................................................................................................4
Question 9..................................................................................................................................4
Question 10................................................................................................................................5
Question 11................................................................................................................................5
Question 12................................................................................................................................5
Question 13................................................................................................................................5
Question 14................................................................................................................................6
Question 15................................................................................................................................6
Question 16................................................................................................................................6
Question 17................................................................................................................................6
Question 18................................................................................................................................7
Question 19................................................................................................................................7

MANAGING FINANCES AND BUDGETS 2
Question 20................................................................................................................................7
Question 21................................................................................................................................7
Question 22................................................................................................................................7
Question 23................................................................................................................................8
Question 24................................................................................................................................8
Question 25................................................................................................................................8
Question 26................................................................................................................................8
Question 27................................................................................................................................9
Question 28................................................................................................................................9
Question 29................................................................................................................................9
Question 30................................................................................................................................9
Question 31................................................................................................................................9
Question 32..............................................................................................................................10
Question 33..............................................................................................................................10
Question 34..............................................................................................................................10
Question 35..............................................................................................................................10
Question 36..............................................................................................................................11
Question 37..............................................................................................................................11
Task 2.......................................................................................................................................11
Question 1.............................................................................................................................11
Question 2.............................................................................................................................12

MANAGING FINANCES AND BUDGETS 3
Question 3.............................................................................................................................12
Question 4.............................................................................................................................12
Likely causes of variances....................................................................................................14
Recommendations................................................................................................................14
Flexed Expenses...................................................................................................................16
Non-flexed Expenses............................................................................................................16
Brief summary......................................................................................................................16
References................................................................................................................................17

MANAGING FINANCES AND BUDGETS 4
MCQ
1 A 8 A 15 A
2 D 9 B 16 B
3 A 10 D 17 D
4 C 11 B 18 A
5 B 12 B 19 D
6 B 13 C 20 D
7 C 14 A
Question 1
Balance Sheet
Profit and loss statement
Cash flow statement
Statement of Equity
Question 2
For the purpose of analysing the cost of goods sold, revenue and the expenses the financial
budget is referred (Rose, 2016).
Question 3
The economic health of the market
Stability of the market

MANAGING FINANCES AND BUDGETS 5
Competition in the market
The type of customers and suppliers in the market (Stea and Andresen, 2017).
Question 4
What is the ultimate goal of my company?
What are the needs of my company?
What is the cost of production of goods or services?
Question 5
What is the cash flow from the ordinary activities?
What is the cash flow from the investing activities?
What is the cash flow from the financial activities?
Question 6
Corporation Act, 2001
Taxation Administration Act, 1996
Payroll Tax Act, 1971
Workplace Gender Equality Act, 1971 (Hillson and Murray-Webster, 2017).
Question 7
The employer must pay a minimum 9.5% of superannuation to comply with statutory
requirements of the company.

MANAGING FINANCES AND BUDGETS 6
Question 8
The employer must refer to the accounts department for the compliance about the FBT, CGT
and GST requirements (Stea and Andresen, 2017).
Question 9
It is a digital record keeping software that is used for maintenance of accounts for the
company. Such type of software is used in providing a brief analysis of the company. Rosner,
Hendrickson and Willett, 2015
Question 10
Bottle
s Basic GST
total
amount
12 11929
3459.4
1 8470
11929.5774
6
The GST amount is 3459.41
Question 11
Revenue 882200
GST 80200 9.09090

MANAGING FINANCES AND BUDGETS 7
9
total
Revenue 802000
Expenses 23560
Wages and
interest
56640
721800
GST
Liability
65618.1
8
Question 12
A bilateral trade is an agreement between the countries which is made with an intention to
promote trade between the countries by reducing the export and import tax production
between the countries (Ren, Qiu, Wang and Lin, 2016).
Question 13
Incoterms is the name of the group
Question 14
The financial data by the software used by the company must be safe and secured.
The user interface of the software must be simple to operate.
The manager of the organisation must go through all the hidden costs that are mentioned in
the software.

MANAGING FINANCES AND BUDGETS 8
The manager of the organisation must go through about the after-sale services provided by
the company (Subramanian, Gunasekaran and Gao, 2016 ).
Question 15
Is the rate of financial software being according to the budget made by the company?
Is there are any hidden costs of the company?
Does the software provide a high security of the data?
Is the user interface of the software being feasible to operate or not?
Question 16
The goals of the company
A brief review about the available resources the company possess
By defining the fixed cost and variable cost of the company
By defining the cost of production of the company (Shkurkin, Sogacheva, Logvencheva and
Khramova, 2016).
Question 17
A sales budget is an estimate which is used in the calculation of profits for the company. The
budget is a difference between the cost of production and the cost used for selling the
product.

MANAGING FINANCES AND BUDGETS 9
Question 18
It is basically a summary of expected incomes and expenses of the company which can be
used as method of effective planning for the company.
Question 19
The following are the four reasons which are important for maintain a record of resource
allocation:
For the purpose of effective communication in the company
For the purpose of forming and implementing the decision-making process of the company
For the purpose of meeting the organisation goals of the company
For the purpose of meeting the quality needs of the company.
Question 20
By identifying the total number of resources of the company
By identifying the functions of resources of the company
By identify the timing schedule of the company (Wang, and Huang, 2017).
By using various tools which helps in identifying the allocation of resources of the company
Question 21
The areas of the budget which are likely to affect are the salaries, research and the
development and the training.

MANAGING FINANCES AND BUDGETS 10
Question 22
It is important to circulate the budgets to the other managers and the supervisors so that a
different perspective can help the organisation find out the new variances which the
preparatory people of the budget forget to make.
Question 23
The cyber risk of data security
Geopolitical risk
IT failure
Frauds
Question 24
Five ways to prevent the misappropriation of funds at the workplace are
Instead of using the normal orders, the purchase orders shall be taken into consideration
Control cash receipts to manage the cash easily
With the assistance of the informal audits on irregular intervals the misappropriation can be
controlled.
To keep a track on the business and to perform and manage the inventory and the security
system is the best step (Rahimi and Kozak, 2017).
Install the security measures through the digital medium to track the unwanted transactions.

MANAGING FINANCES AND BUDGETS 11
Question 25
It is basically a positive difference between the budgeted expenses and the actual expenses
otherwise it will count for unfavourable.
Question 26
a) Favourable as the expense are low and profit would increase
b) If the profit is below then unfavourable otherwise favourable because actual budget shall
cater profits
c) Unfavourable as the fixed costs would occur despite the sales volume
d) Unfavourable as it will increase the expense cost
Question 27
The review if the cash flow statements is necessary to get an idea of the payment of things
which enables the business to run. The monitoring of the expenses such as the raw materials,
employees, rent, and other operating expenses need a supervision to cater the variances that
can affect the performance of the business (Wang, and Huang, 2017).
Question 28
The two operational issues due to which there is a requirement of the contingency plan are
when the payroll clerk suddenly quits in the organisation and when the key suppliers go out
of the business and the company loses the major vendors.