Financial data is a set of information that shows the financial health of the business. The company uses this data to analyse the business performance and to plan their strategies. External people and organisations used the data to determine the creditworthiness of the business and to determine whether they comply with the government regulations and legislation.


Selecttwo (2)types of financial statements from the below list and explain their purpose inestablishing and reviewing profits and losses.


Types of financial statements


Income statement.


Cash flow statement.


Balance sheet.


Note to Financial Statements.


Statement of change in equity.






Flag question: Question 2


Question 2



Probityrefers to the act of behaving with integrity,fairnessand honesty. All organisations and their staff need to maintainprobity.


Review the requirements for financial probity. Then discuss

requirements for financial probity andthe benefits involved in conducting financial probity checks for your employees.






Flag question: Question 3


Question 3



Accounting principles are the guidelines that an organisation must follow when reporting financial information. It guides the accounting process on how to record, analyse, verify, and report the business’s financial position.


From the list below selecttwo (2)principles of accounting and financial systems and discuss.


Accrual principle.


Consistency principle.


Cost principle.


Full disclosure principle



Going concern principle



Matching principle



Monetary unit principle



Revenue recognition principle.






Flag question: Question 4


Question 4



Discuss the key functions of the financial management software,and identifyfive (5)examples of accounting software that can be used by businesses to track their business operations and automate their financial statements.






Flag question: Question 5


Question 5



A financial budget is a budget that shows the company strategies for managing its assets, cash flow, income and expenses. It provides a complete picture of the financial health of the business.Budgets fall under two basic processes. Afixed budget or a f

lexible budget.


In developing a budget there are key components several of which are listed below, SelectOne (1)and discuss.


Set realistic goals.


Gather financial information.


Record all the revenue sources.


Determine business expenses.


Track business profit or loss.


Make necessary adjustments.


Set up an emergency fund.


Plan and conduct regular review.






Flag question: Question 6


Question 6



Below are listed a number of legislation and conventions relevant to financial management in an organisation. Select one and discuss in no less thanfifty (50)words


Corporation Act 2001(Cth) (Corporation Act)


Australian Securities Exchange (ASX)


Australian Securities and Investment Commission (ASIC)


Australian Accounting Standards Board (AASB)


Work health and safety (WHS)


The Competition and Consumer Act 2010 (CCA)






Flag question: Question 7


Question 7



Taxes in Australia are administered and collected by the Australian Taxation Office (ATO) and,in some cases,state government revenue offices. The key taxes affecting businesses are Company (income) Tax, Capital Gains Tax (CGT) and the Goods and Services Tax (GST).

Discuss in no more thanfifty (50)words


of these key taxes.


Company tax


Capital Gains Tax


Goods and Services Tax