FNSACC501 Module 3 Week 1 Assessment: Questions and Answers Analysis

This document presents the solutions to an FNSACC501 assessment, focusing on providing financial and business performance information. The assignment covers various aspects of business operations, including the components of a business plan, the significance of business succession planning, and the importance of liquidity. It also analyzes scarce resources within a business context, explores management functions in a hiring scenario, and addresses partnership organization and financing strategies. Furthermore, the assignment includes the construction of an income statement based on provided financial data. The provided answers demonstrate an understanding of financial management, business planning, and accounting principles.

Module 3 Week 1
Assessment Type Questions and answers
Unit Code: FNSACC501
Unit Title: Provide financial and business performance information
Student Declaration: I declare that this work has been completed by me honestly and with integrity. I understand that the
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apply to these assessment tasks.
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Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only
achieve competence when all assessment components listed under procedures and specifications of the assessment
section are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is
assessed as NYS is eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did
Not Submit (DNS) will be recorded.
Principles of Assessment
Based on Clauses 1.8 – 1.12 from the Australian Standards Quality Assurance’s (ASQA) Standards for Registered Training
Organizations (RTO) 2015, the learner would be assessed based on the following principles:
Fairness - (1) the individual learner’s needs are considered in the assessment process, (2) where appropriate, reasonable
adjustments are applied by the RTO to take into account the individual leaner’s needs and, (3) the RTO informs
the leaner about the assessment process, and provides the learner with the opportunity to challenge the result
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of the assessment and be reassessed if necessary.
Flexibility – assessment is flexible to the individual learner by; (1) reflecting the learner’s needs, (2) assessing
competencies held by the learner no matter how or where they have been acquired and, (3) the unit of
competency and associated assessment requirements, and the individual.
Validity – (1) requires that assessment against the unit/s of competency and the associated assessment requirements
covers the broad range of skills and knowledge, (2) assessment of knowledge and skills is integrated with their
practical application, (3) assessment to be based on evidence that demonstrates tat a leaner could
demonstrate these skills and knowledge in other similar situations and, (4) judgement of competence is based
on evidence of learner performance that is aligned to the unit/s of competency and associated assessment
requirements.
Reliability – evidence presented for assessment is consistently interpreted and assessment results are comparable
irrespective of the assessor conducting the assessment
Rules of Evidence
Validity – the assessor is assured that the learner has the skills, knowledge and attributes, as described in the module
of unit of competency and associated assessment requirements.
Sufficiency – the assessor is assured that the quality, quantity and relevance of the assessment evidence enables a
judgement to be made of a learner’s competency.
Authenticity – the assessor is assured that the evidence presented for assessment is the learner’s own work. This would
mean that any form of plagiarism or copying of other’s work may not be permitted and would be deemed
strictly as a ‘Not Yet Competent’ grading.
Currency – the assessor is assured that the assessment evidence demonstrates current competency. This requires the
assessment evidence to be from the present or the very recent past.
Resources required for this Assessment
 All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
 Upon completion, submit the assessment via the student learning management system to your trainer along with the
completed assessment coversheet.
 Refer the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer
Instructions for Students
Please read the following instructions carefully
 This assessment is to be completed according to the instructions given by your assessor.
 Students are allowed to take this assessment home.
 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 2 weeks of the assessment due date.
 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 aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment and re-enrolment policy for more information.
1. List the major components of a business plan. What components are of primarily concerned to you, and
why?
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major components of a business plan
 Executive summary
 Company description
 Market analysis
 Competitive analysis
 Description of management and organization
 Breakdown of products and services
 Marketing plan
 Sales strategy
Components of primarily concerned
Executive summary- as this will be including table of content, company background, management overview, competitive
advantages and financial highlights. This will also containing the overall information which is used to cover within business
plan along with results or conclusion part what is done within
Business description and structure- This will include briefly describing what type of business is been done and what they
are selling, manufacturing process, handling of inventory, availability of material and fulfillment. It is important as will cover
the basic description of manufacturing process and details of business as well.
Market research and strategies- this will be describing marketing strategy like that of sales, deadlines, milestones, public
relations and advertising. As doing marketing is one of the most important part for company for which market research will
be done.
Management and personnel- this includes providing expert advice to management and executive to meet out their
business goals.
Financial documents- this will describing marketing section like projections of profits and loss statement, cash flow and
balance sheets.
2. What is the significance of a business succession plan?
The succession plan of business is one of the method in which business owner will transfer their ownership of
company to the other party or their succeeding partners. This will be majority due to death, or disability or
retirement of that person. Under this process assessment of assets and wealth which is accumulated will also be
included by company or owner. Making a complete succession plan is very much important for firm as will be
identifying and developing more number of new leaders who could be able to replace the old one at the time
when they are retiring or leaving or dieing. Succession planning also increases the availability of experience with
capable of preparing to assume these roles as they are becoming availability.
3. What is the importance of liquidity?
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For any business liquidity is very much important and essential which will be gaining insides of available funds in
hand and at cash for longer duration of time as this is helpful in generating more clear profits. As liquidity refer to
that ability to turn assets of company like accounts receivable amnd investment into cash.
4. Carry Yoki’s Lounge consists of the following. Carry, the owner believed that people would come to hear
a band play on Friday, Saturday, and Sunday evening. During the remainder of the week, she believed her
customers would watch sporting events on several television sets located throughout the lounge. Carry
employed two bartenders, three servers, two assistant servers, two cooks, one dishwasher and a clean-
up person. She had a bar, 15 barstools, 4 tables, 40 chairs, 4 television sets, and one satellite dish. She
had an oven, stove, grill, refrigerator, sinks, dishes, and glassware. Carry started this business with
$50,000 of her own money, and she borrowed $150,000 from the bank.
From this description, list each of the scarce resources that are used in Carry Yoki’s Lounge.
List of scare resources-
Land
Labour
Funds
Equipments
5. Carol Jones wanted her business to increase sales by 50 percent over the next five years. To do this, she
must hire three more people. She wanted to determine how to evaluate these people, so she lists their
job specifications and develops job descriptions. She also listed where these employees would work and
what training they would require.
What management functions is Carol performing, and how do they apply to this scenario?
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The role applied here is of HR manger as she is making the job description and specification of the 3 people or
employees who are required here for her company. This management function is been performed as she is
requiring this.
6. Sam Jones, Mary Adams, and Larry Brown have been talking about starting their own business for
several years. Sam is an electronic repairman, Mary is a partner in a large law firm, and Larry is an
excellent sales person. Sam and Larry will work in the business on an equal basis. It will cost $100,000
to start this business. Sam has no money, Mary has $60,000 and Larry has $40,000.
If they form a partnership, how would you recommend that they organize?
In the starting of 1st financial year all of them can be partner in same firm but the major problem is about
Sam who is having not funds with him. So either he should arrange the same or must be within
partnership for only 1 year.
7. Joe Latte has completed a business plan and determined that it will take $120,000 to open the coffee and
gelato shop. He has $30,000 of his own money and will have to obtain $90,000 in loans or grants.
How should Joe go about getting financing? What is the probability that he can obtain a grant to start an
Italian ice cream shop?
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Yes Joe must go about for getting financing from bank as it would be the best option for him to get the money
from bank. AS there is no scope for obtaining any grant to start an Italian ice-cream shop.
8. Construct an income statement using the following information: net sales, $500,000; salaries, $100,000;
rent, $24,000; COGS, $250,000; utilities, $25,000; payroll taxes, $25,000; insurance, $12,000; and interest
expense, $5,450.
Make sure that you include gross profit, operating expenses, and net profit.
income
net sales 500000
COGS 250000
Gross profit 750000
expenses
salaries 100000
payroll taxes 25000
insurance 12000
interest 5450
utilioties 25000
rent 24000
operating
expenses 191450
net profit 558550
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Assessment Submission Checklist to be completed by the Trainer/Assessor
Unit name: FNSACC501 - Provide financial and business performance information
Assessment: Week 1
Did the student complete and provide evidence for the following (please  ): Yes No
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1.1 Access clients’ needs and analyse their financial data
1.2 Prepare and document appropriate advice for clients that:
complies with financial legislation and accounting standards, practices and principles
1.3 Assesses taxation, compliance and business viability issues faced by clients
1.4 Assesses risk management options and practices
Has the learner proven they can (please  ): Yes No
1.1 Explain the key requirements of taxation legislation relating to deductions, allowances and charges
1.2 List the key areas that can cause significant taxation issues
1.3 Compare and contrast forecasting techniques
1.4 Identify and explain the key features of government financial policy and secretary’s financial
management instructions
1.5 Explain the key requirements of relevant corporations and consumer legislation
1.6 Describe a range of methods for presenting and formatting financial data
1.7 Identify and explain the key principles of cash flow and budgetary control
1.8 Identify and categorize sources of information on financial products and markets
1.9 Outline a range of risks and contingencies and risk management options relating to financial and
business performance
1.10 Outline client rights and responsibilities.
1.11 Explain the security procedures for handling cheques, vouchers and cash
1.12 Describe the key features of a range of reports.
Feedback and result outcome: Yes
Satisfactory
Not Yet Satisfactory
Re-assessment required
Trainer/ Assessor’s declaration: I hereby certify that the above student has been assessed by myself and all assessments are carried out as
required by the Principles of Assessments (Clause 1.8 of the Standards for RTO 2015).
Trainer/ Assessor’s Initials Date
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