STUDENT ASSESSMENT INFORMATION
General Instructions
Complete this assessment as per the provided guidelines.Incorrect answers will result in feedback and one opportunity for resubmission to demonstrate competency.For clarification or concerns, consult your assessor.Refer to the Colleges re-submission and re-sit policy for more details.This is an open-book assessment, to be completed independently within the designated timeframe. Ensure proper referencing for external sources.Submit the completed assessment via Moodle.
Reassessment and Appeals
If dissatisfied with your result, submit a written appeal to the Chief Executive Officer within 14 days of term commencement.Appeals are reviewed by the Academic Manager and, if necessary, a panel including external assessors.Decisions will be communicated within 14 days and are final. Further challenges may involve independent mediation.Re-enrolment in the subject is required if appeals are unsuccessful.
Academic Appeals Process
Submit a completedRequest for Appeal of a Decisionform with supporting documents to the Student Support Officer in person or via email [email protected] must be lodged within seven days of the re-evaluation outcome.In emergency cases, provide a medical certificate within three working days of the certificates end date.The CEOs decision is final, though external mediation options are available for unresolved cases.
Plagiarism and Collusion
Plagiarism: Using anothers ideas or work without proper acknowledgment, including paraphrasing, copying, or reproducing materials without citation.Collusion: Unauthorized collaboration or presenting shared work as individual effort.Both plagiarism and collusion constitute cheating, subject to disciplinary action as per academic integrity policies. Proven misconduct may be recorded on academic files and result in penalties.
Assessment Requirements
To achieve competency, all tasks must be completed and passed.
Introduction
Welcome to the Student Assessment Tasks forSITXFIN008 Interpret financial information. These tasks have been designed to help you demonstrate the skills and knowledge that you have learnt during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also follow the advice provided in theHospitality Works Student User Guide. The Student User Guide provides important information for you relating to completing assessment successfully.
Assessment for this unit
For you to be assessed as competent, you must successfully complete two assessment tasks:
Assessment Task 1: Knowledge questions You must answer all questions correctly.Assessment Task 2: Project This task requires you to analyse and use financial information and accounting software for a case study business, resolve discrepancies and interpret and report on operational activity.
Assessment Task 1: Knowledge questions Information for students
Knowledge questions are designed to help you demonstrate the knowledge which you have acquired during the learning phase of this unit. Ensure that you: review the advice to students regarding answering knowledge questions in theHospitality Works Student User Guidecomply with the due date for assessment which your assessor will provideadhere with your RTOs submission guidelinesanswer all questions completely and correctlysubmit work which is original and, where necessary, properly referencedsubmit a completed cover sheet with your workavoid sharing your answers with other students.
Assessment information
Information about how you should complete this assessment can be found in Appendix A of theHospitality Works Student User Guide.Refer to the appendix for information on:
where this task should be completed
the maximum time allowed for completing this assessment task
whether or not this task is open-book.
Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix B of the Student User Guide. However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that.
Questions
Provide answers to all of the questions below.
Define the following financial terminology specific to various financial reports.
Term
Definition
a.Assets.
Items or property owned by a company that hold value and are expected to bring future financial gain, such as money, tools, property, or unpaid customer invoices.
b.Liabilities.
These are financial duties or amounts that a company is responsible for paying to outside parties, including debts, loans, or outstanding bills.
c.Proprietorship.
This represents the owners total stake in the business, calculated as what remains after all debts and obligations have been subtracted from the companys assets
d.Debtors.
Customers or organizations that owe the business money for goods or services provided on credit terms, typically shown as amounts due to be collected.
e.Creditors.
Suppliers or lenders to whom the business owes payment for products or services received on credit, listed as financial obligations.
List three examples of typical reporting periods that may be used by businesses.
1.Monthly Reporting Period This is when a business reviews its financial activity at the end of each month. It helps track cash flow, expenses, and income regularly and allows for quicker decision-making.
2.Quarterly Reporting Period Covering a three-month span (like January to March), this period is commonly used by companies to analyze performance trends, compare results, and report to stakeholders more meaningfully.
3.Annual Reporting Period This is a full 12-month timeframe, usually aligned with the financial or calendar year, and is used for preparing comprehensive reports like profit and loss statements, balance sheets, and tax filings.
List three examples of financial years that may be used by different businesses.
1.1 July to 30 June This is the standard financial year in Australia, used by most local businesses and government bodies for accounting and tax purposes.
2.1 January to 31 December Known as the calendar year, some businessesespecially those with global operationsprefer this for simplicity and to align with international partners.
3.1 April to 31 March This financial year is often used by businesses that want to match their accounting periods with specific industry trends, or it may be based on the financial year used in other countries like India or the UK.
List five features and functions of accounting software used to manage financial operations.
1.Automated Invoicing The software can create and send professional invoices automatically, track payments, and send reminders to customers for overdue bills.
2.Expense Tracking It records daily expenses, categorizes them, and helps monitor where the money is going, making it easier to control costs.
3.Financial Reporting Generates essential reports like profit and loss statements, balance sheets, and cash flow summaries to give a clear view of the businesss financial health.
4.Payroll Management Manages employee salaries, tax deductions, superannuation, and pay slips, ensuring compliance with employment laws.
5.Bank Reconciliation Matches transactions from the bank statement with those recorded in the software to ensure all income and expenses are accurately tracked.
List three uses of financial information and reports in monitoring overall business performance for an organisation.
1.Measuring Profitability Financial reports like income statements help determine whether the business is making a profit or running at a loss, which is crucial for assessing success and sustainability.
2.Tracking Cash Flow By reviewing cash flow statements, a business can monitor how much cash is coming in and going out, ensuring it can meet day-to-day expenses and avoid financial stress.
3.Supporting Strategic Decision-Making Financial data provides valuable insights for planning future investments, reducing costs, or expanding operations, enabling informed and confident business decisions.
Explain the following operational or departmental financial activities/terms that organisations commonly track and interpret in terms of their financial information.
Operational or departmental financial activities
Explanation
a.Average customer spend.
This refers to the typical amount of money a customer spends during a single transaction or visit. It helps businesses understand buying behaviour and can guide strategies to increase revenue per customer.
b.Quotations realised to sales.
This refers to the typical amount of money a customer spends during a single transaction or visit. It helps businesses understand buying behaviour and can guide strategies to increase revenue per customer.
c.Sales performance.
A measure of how well a business or department is doing in generating revenue over a set period. It often includes comparisons to targets, previous results, or market benchmarks.
d.Stock levels.
Refers to the quantity of inventory a business has on hand. Keeping track of stock ensures theres enough to meet customer demand without overstocking, which can tie up cash.
Name three examples of daily, weekly and monthly transactions that departments or organisations commonly monitor.
1.Sales Transactions Recording sales made each day, whether cash or credit, ensures up-to-date cash flow monitoring and inventory control.
2.Payroll Processing Calculating and distributing salaries or wages to employees weekly, ensuring staff compensation is handled on time and accurately.
3.Accounts Payable and Receivable Reviewing and reconciling all unpaid bills (accounts payable) and invoices owed by customers (accounts receivable), ensuring financial obligations are met.
Explain what the departmental expenditure items listed below refer to when interpreting financial information.
Name of Expenditure
Description
a.Labour.
This refers to the costs associated with paying employees or contractors. It includes wages, salaries, benefits, and other compensation related to the workforce, typically one of the largest ongoing business expenses.
b.Stock purchased.
The cost of acquiring inventory or goods that will be sold. This expenditure includes purchasing raw materials or finished goods for resale, and its vital for tracking the flow of goods and overall inventory management.
c.Wastage.
This refers to any goods or resources that are lost, damaged, or used inefficiently during production or business processes. Tracking wastage helps businesses minimize loss and optimize resources to improve profitability.
Describe what each of the following income descriptors means when interpreting financial statements or reports.
Name of Income
Description
a.Covers and gross income.
“Covers” refers to the number of customers served, particularly in the hospitality industry. “Gross income” is the total revenue generated from the sale of goods or services before expenses are deducted. It helps assess the overall sales performance.
b.Commission earnings.
This refers to the income earned by employees, typically sales staff, based on the sales they generate. Its performance-based pay and is often a percentage of the value of the sales made.
c.Occupancy and gross income.
“Occupancy” refers to the percentage of available space or units (such as hotel rooms or office space) that are occupied. “Gross income” is the total income generated before deductions, often including rental income, service fees, or related revenue.
d.Sales.
This is the total revenue earned from the sale of goods or services, often before any deductions for costs, taxes, or discounts. Its a core indicator of a businesss performance in generating revenue from its products or services.
Differentiate between accounts payable and accounts receivable.
Accounts Payable refers to the amounts a company owes to its suppliers for goods and services that have been received but not yet paid for. These are liabilities that the business must settle in the future, typically within short-term periods like 30, 60, or 90 days.Accounts Receivable represents the money owed to a company by its customers for goods or services provided on credit. These are assets for the business, as they reflect the revenue the company expects to collect in the future.
Explain the term variance from budget.
Variance from budget refers to the difference between the budgeted financial figures and the actual financial outcomes. A positive variance means the business has exceeded expectations (e.g., more revenue or lower costs), while a negative variance indicates performance below expectations (e.g., less revenue or higher costs).
Outline the main purpose of the following financial reports.
Type of Financial Report
Outline of Purpose
a.Budget.
A budget outlines expected revenues and expenditures for a specific period, helping a business plan and manage its finances effectively by comparing actual performance against set targets.
b.Cash flow.
The cash flow statement tracks the flow of cash in and out of a business, helping to ensure that the company has enough liquidity to meet its short-term obligations and avoid cash shortages.
c.Covers.
Covers refer to the number of customers served, often used in hospitality to assess revenue generated per customer and evaluate the efficiency of customer service operations.
d.Expenditure.
The expenditure report tracks all business expenses, allowing the company to manage its costs and ensure it stays within its budget for a given period.
e.Labour and wages.
This report details the costs related to employee wages, including salaries, bonuses, and any other employee-related expenses, to track labor costs as a percentage of total expenses.
f.Occupancy rates.
This report shows the percentage of available space (e.g., hotel rooms, rental units) that has been booked or occupied, used to assess the businesss operational efficiency and revenue generation.
g.Purchases.
The purchases report tracks all items bought by the business, typically focusing on inventory purchases, to manage stock levels and maintain a smooth flow of materials.
h.Receivables.
This report tracks the outstanding amounts that customers owe the business, helping to manage credit and ensure that payments are collected in a timely manner.
i.Sales.
The sales report tracks the revenue generated from the sale of goods or services, helping to evaluate overall business performance and inform strategic decisions.
j.Stock.
The stock report monitors the quantity and value of inventory on hand, ensuring there is enough stock to meet demand without overstocking, which ties up capital.
k.Transactions.
This report records all financial transactions of the business, including purchases, sales, and payments, for accurate accounting and auditing purposes.
l.Transactions exempted.
This report highlights any transactions that are excluded from regular accounting procedures, such as tax-exempt or special-purpose transactions.
m.Units sold.
The units sold report tracks the number of products or services sold within a given period, helping businesses evaluate product performance and sales effectiveness.
n.Variance.
The variance report compares actual financial results to budgeted amounts, helping businesses understand discrepancies and adjust their strategies for better performance.
o.Wastage.
The wastage report tracks losses or unused materials, helping businesses identify inefficiencies and reduce unnecessary waste in operations.
Explain the following terminology in relation to financial record-keeping.
Terminology
Explanation
a.Ledger.
A central record where all financial transactions are grouped and summarised by account (e.g., sales, expenses).
b.Subsidiary ledgers.
Detailed records that support a general ledger account, such as accounts receivable or payable for individual customers or suppliers.
c.Journals.
Chronological records of all financial transactions before they are posted to the ledger. Often called the book of original entry.
d.Transactions.
Any financial activity or event, such as sales, purchases, or payments, that affects the businesss accounts.
e.Receipts.
Documents that confirm money has been received by the business, typically after a sale or payment.
f.Disbursements.
Payments made by the business to settle expenses or debts, such as supplier invoices or wages.
g.Invoices.
Bills issued by the business to customers, requesting payment for goods or services provided.
h.Cash flow.
The movement of money in and out of a business, showing how well it manages cash for operations and obligations.
Explain what a chart of accounts is.
Achart of accountsis a structured list of all the financial accounts used by a business to record its transactions. Each account in the chart has a unique number and name, and it is grouped into categories like assets, liabilities, income, and expenses.
The purpose of a chart of accounts is to organise financial data in a clear and consistent way, making it easier to create reports, track financial performance, and ensure accurate bookkeeping.
List the five account categories in the General ledger.
1.Assets
2.Liabilities
3.Equity (Owners Equity or Capital)
4.Revenue (Income)
5.Expenses
Explain the following key elements of accounting.
Key Element
Explanation
a.Basic rules for double-entry accounting.
Every financial transaction affects at least two accounts one is debited and the other is credited. The total debits must always equal the total credits to keep the accounting equation balanced.
b.Concept of debits and credits.
Debits and credits are used to record changes in accounts. Adebitincreases assets or expenses and decreases liabilities or equity, while acreditincreases liabilities or equity and decreases assets or expenses.
Explain the difference between the accrual and cash accounting methods.
Accrual Accounting records income and expenses when they are earned or incurred, even if the money hasnt been received or paid yet. This method gives a more accurate picture of financial performance.
Cash Accounting records income and expenses only when cash is actually received or paid. It’s simpler but may not reflect true financial activity during a period.
Example:
If you issue an invoice in March but get paid in April:
Accrual method records it in March.
Cash method records it in April.
Complete the table below by providing information on the topics listed for a Profit and Loss Statement.
Topic
Information
a.Purpose.
To show a businesss financial performance by reporting income, expenses, and profit or loss over a specific period.
b.How these reports are generated.
Created using accounting software or manually by summarising revenue and expenses recorded in the ledger for the reporting period.
c.Format.
Typically includes headings for revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit/loss.
d.Features.
Includes total income, expenses, and final net profit or loss; usually monthly, quarterly, or annually.
e.Key information.
Sales revenue, operating expenses, cost of goods sold, net profit/loss, and sometimes comparisons to budget or previous periods.
Complete the table below by providing information on the topics listed for a Balance Sheet.
Topic
Information
a.Purpose.
To show a companys financial position at a specific point in time by listing its assets, liabilities, and equity.
b.How these reports are generated.
Generated using accounting software or manual records by summarising balances from the general ledger.
c.Format.
Typically split into three sections: Assets, Liabilities, and Equity, following the formula: Assets = Liabilities + Equity.
d.Features.
Snapshot view of financial health, helps assess liquidity, solvency, and capital structure.
e.Key information.
Cash, accounts receivable, inventory, fixed assets, accounts payable, loans, and owners equity.
In relation to record-keeping and accounting explain the purpose of reconciliations.
Compare and match financial records(like bank statements, invoices, or cash records) with the internal accounts of a business to ensure accuracy and consistency.
Reconciliations help identify and correct errors, detect fraud, and confirm that all transactions have been recorded properly, keeping the financial records reliable and up to date.
List three different types of reconciliation other than a bank reconciliation that an organisation might undertake as part of its business monitoring activities.
1.Accounts Receivable Reconciliation Ensures that the amounts owed by customers match the records in the companys accounts, identifying any discrepancies between the two.
2.Accounts Payable Reconciliation Involves verifying that the amounts the company owes to suppliers match the records in the accounts payable ledger.
3.Credit Card Reconciliation Involves comparing credit card statements to company records to ensure that all transactions are correctly recorded and that there are no errors or fraudulent charges.
Explain how to treat unpresented cheques when undertaking a bank reconciliation.
When undertaking abank reconciliation,unpresented chequesare treated as follows:
Unpresented cheques are those that have been issued by the business but have not yet been presented to the bank for payment. These cheques arededucted from the bank balancein the reconciliation process, as the business has already recorded them as an expense. However, since the bank has not yet processed them, they do not affect the bank’s current balance.
These cheques will be carried over into the next period’s reconciliation until they are presented to the bank. The main purpose is to ensure that the business’s records reflect all transactions, including those that have not yet been cleared by the bank.
Explain what is meant by bank charges and describe how to treat them when undertaking a bank reconciliation.
Bank charges refer to fees imposed by the bank for various services, such as account maintenance, wire transfers, or overdrafts.
When undertaking a bank reconciliation, bank charges are treated as follows:
Record the bank charges in the companys accounting system by debiting the relevant expense account (e.g., bank charges expense) and crediting the bank account to reflect the reduction in the cash balance.
Adjust the bank balance by adding the charges to the bank’s recorded balance (if necessary) to match the actual cash available in the company’s bank account.
This ensures that both the companys financial records and the bank statement are aligned.
Describe how the listed items must be treated when doing a bank reconciliation.
Items
How they must be treated
a.Direct debits on bank statement
Direct debits represent automatic withdrawals from the bank (e.g., for bills). These should be recorded as expenses in the companys records and deducted from the bank balance to reconcile with the companys financial records.
b.Direct credit on bank statement
Direct credits represent payments received into the business’s account (e.g., customer payments). These should be recorded as income in the companys records and added to the bank balance to match the companys financial records.
Explain the concept of costing.
The concept of costing refers to the process of determining the total expenses incurred in producing goods or providing services. It helps businesses assess the direct and indirect costs involved in production or operation and is essential for setting pricing strategies, budgeting, and maximizing profitability.
Costing can be categorized into different types, such as:
Direct costs (e.g., raw materials, labor),
Indirect costs (e.g., overhead, utilities),
Fixed costs (e.g., rent), and
Variable costs (e.g., raw material costs).
Costing is crucial for financial decision-making, ensuring that a company can price its products or services effectively and manage its resources efficiently.
Differentiate between fixed costs and variable costs.
The explanation for the difference between fixed costs and variable costs:
Fixed Costs: These are costs that do not change with the level of production or sales. They remain constant regardless of how much is produced or sold. Examples include rent, salaries, and insurance premiums.
Variable Costs: These costs fluctuate with the level of production or sales. As production increases, variable costs rise, and when production decreases, so do variable costs. Examples include raw materials, direct labor, and shipping costs.
List three accounting requirements that apply to goods and services tax (GST).
1.GST Registration Businesses must register for GST if their annual turnover exceeds the threshold set by the government (usually a specific amount) and collect GST on taxable goods and services sold.
2.GST Reporting Businesses must report the GST they have collected from sales and the GST they have paid on purchases, typically through periodic GST returns (e.g., quarterly or annually).
3.GST Payment Businesses must remit the difference between the GST collected on sales and the GST paid on purchases to the tax authority. If more GST has been paid on purchases than collected on sales, businesses may be entitled to a refund.
Outline the reporting requirements that apply to goods and services tax (GST).
GST Registration: Businesses must register for GST if their turnover exceeds the threshold set by the tax authority. Once registered, they are required to charge GST on taxable goods and services and are eligible to claim GST credits for GST paid on business expenses.
GST Returns: Registered businesses must submit GST returns (often quarterly or annually) to report the amount of GST collected on sales (output tax) and the amount paid on purchases (input tax). The return ensures that businesses pay the net amount of GST to the tax authority.
Invoicing and Record-Keeping: Businesses must issue GST-compliant invoices for all taxable sales, including details of the GST charged. They must also maintain proper records of sales, purchases, and any GST-related transactions to ensure transparency and compliance.
These requirements ensure accurate reporting and payment of GST, maintaining proper tax records for auditing purposes.
Assessment Task 1: Checklist
Students name:
Did the student provide a sufficient and clear answer that addresses the suggested answer for the following?
Completed successfully?
Comments
Yes
No
Question 1a
Question 1b
Question 1c
Question 1d
Question 1e
Question 2
Question 3
Question 4
Question 5
Question 6a
Question 6b
Question 6c
Question 6d
Question 7
Question 8a
Question 8b
Question 8c
Question 9a
Question 9b
Question 9c
Question 9d
Question 10
Question 11
Question 12a
Question 12b
Question 12c
Question 12d
Question 12e
Question 12f
Question 12g
Question 12h
Question 12i
Question 12j
Question 12k
Question 12l
Question 12m
Question 12n
Question 12o
Question 13a
Question 13b
Question 13c
Question 13d
Question 13e
Question 13f
Question 13g
Question 13h
Question 14
Question 15
Question 16a
Question 16b
Question 17
Question 18a
Question 18b
Question 18c
Question 18d
Question 18e
Question 19a
Question 19b
Question 19c
Question 19d
Question 19e
Question 20
Question 21
Question 22
Question 23
Question 24a
Question 24b
Question 25
Question 26
Question 27
Question 28
Task outcome:
Satisfactory
Not satisfactory
Assessor signature:
Assessor name:
Date:
Assessment Task 2: Project
Information for assessors
This task requires students to analyse and use financial information and accounting software for a case study business, resolve discrepancies and interpret and report on operational activity.
Students will need access to:
theirStudent Assessment Taskstheir learning resources and other information for referencea printer and accounting softwaretheirFinancial Data and Reports Pack.
Ensure that you:
review the advice to assessors regarding administering practical assessment in theHospitality Works Trainer and Assessor User Guideprovide students with a due date for assessmentfollow your organisations policies and proceduresrefer to your organisations Training and Assessment Strategyprovide written feedback to each studentprovide resubmission guidance to students (including a timeline) who do not complete the task satisfactorilycomplete the Assessment Task 2 Checklist which can be found at the end of this taskcomplete the Final Results Record which can be found at the end of this Assessor Marking Guide.
Assessment delivery information
Assessment delivery information which has been contextualised to your RTOs student cohort can be found in Appendix A of theHospitality Works Trainer and Assessor User Guide.Use this information to advise students of:
where this task should be completed
the maximum time allowed for completing this assessment task
whether or not this task is open-book
Note: Students should complete and submit an assessment cover sheet with their work. A template is provided in Appendix B of the Assessor User Guide but you should refer to your organisations policies and procedures.
Students must submit:
an email to the owner with the following attached:
oMonthly Financial Monitoring Report
oBanking transactions report
oBalance Sheet
oProfit and Loss Statement
oBusiness Activity Statement
oAccounts Payable Summary
oAccounts Receivable Summary.
Information for students
This task requires you to analyse and use financial information and accounting software for a case study business, resolve discrepancies and interpret and report on operational activity.
You will need access to:
your learning resources and other information for referencea printer and accounting softwareyourFinancial Data and Reports Pack.Ensure that you:review the advice to students regarding responding to written tasks in theHospitality Works Student User Guidecomply with the due date for assessment which your assessor will provideadhere with your RTOs submission guidelinesanswer all questions completely and correctlysubmit work which is original and, where necessary, properly referencedsubmit a completed cover sheet with your workavoid sharing your answers with other students.
Assessment information
Information about how you should complete this assessment can be found in Appendix A of theHospitality Works Student User Guide.Refer to the appendix for information on:
where this task should be completed
how your assessment should be submitted.
Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix B of the Student User Guide. However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that.
Tasks required for this unit
This unit of competency requires that you:
correctly interpret at least six of the following financial information documents or reports used to monitor overall business performance:
oaccount summaries and balances
obalance sheets
obank deposit documentation
obank statements
obusiness activity statements (BAS)
ocredit card transaction statements
oinvoices
ojournal entries
omerchant statements
oprofit and loss statements.
provide financial information using correct financial terminology on six different operational or departmental financial activities listed in the knowledge evidence.
Instructions for how you will complete these requirements are included below.
Activities
Complete the following activities.
Carefully read the following information.
You are the manager of a business, called Boho Dreams, in the weddings and events industry. You have been asked by the manager to complete some of the financial data entries, review the figures for the previous month (July 20XX) and then prepare the monthly report for them. Most of the data has been entered for the past month you will need to complete the final transactions. You need to submit the report to the owner, Andrew, within a certain timeframe your assessor will provide you with the specific timeframe required.
As you are the manager, you do not need to request approval for any discrepancies you may resolve.
What do I need to demonstrate?
During your practical assessments you will be required to demonstrate a range of the skills and knowledge that you have developed during your course. These include:
access financial information from report to monitor business performance
interpret financial information to monitor business performance from financial information and reports
review operational or departmental financial activities
use information to determine impacts on operational activities
correct discrepancies where applicable
provide financial information on operational or departmental activities
work within required timelines.
How will I provide evidence?
Your assessor will provide you with templates to complete each task. You will find some detailed information about providing evidence; this will include;
an email to the owner with the following attached:
oMonthly Financial Monitoring Report
oBanking transactions report
oBalance Sheet
oProfit and Loss Statement
oBusiness Activity Statement
oAccounts Payable Summary
oAccounts Receivable Summary.
Tips for completing your Project
Read through this assessment and each task before you get started and make sure you understand what you need to do. If you are unsure, speak to your assessor and/or supervisor.
Stay up to date!
Stay in touch with your assessor. Ask questions, raise issues, check in, communicate.
Most importantly, ask for help if you are having trouble!
Access and interpret financial information.
Access and review theFinancial Data and Reports Packwhich provides you with details of the case study along with the following reports:
Bank statement
Credit card statement
Customer invoices
Bank deposit slip
EFT slips and summary.
Access the accounting software system provided to you by your assessor. Extract and print the following report and study the information contained within:
Banking Transactions Report.
When reviewing the information, look for:
items on the bank statement and credit card statement that have not been entered yet
any discrepancies between source documents and data from the reports.
Process transactions and reconcile discrepancies.
Enter the following transactions into the accounting software:
Item on bank statement not yet entered.
Item on credit card statement not yet entered.
Bank deposit slip amount this was a cash payment received for chair cover rental on 31 July 2020 and has not yet been recorded.
Invoice to Tables and Chairs on 31 July for chair hire $480.52.
Invoice to Kingscliff Events on 31 July for a Style Package $1,020.00.
Reconcile any errors found and pass journals accordingly.
Extract reports.
Once you have entered all the above transactions and you are satisfied that this has been done correctly, extract the following reports for the month from the accounting software:
Bank account transactions report
Balance Sheet
Profit and Loss Statement
Business Activity Statement
Accounts Payable Summary
Accounts Receivable Summary.
Develop a report.
Develop the monthly financial monitoring report for the owner of the business.
Provide a summary of the months activity and your findings about potential impacts to future operational activity. You may develop a report in your own template or format.
Include specific information on:
A summary of sales for the month and performance in relation to the various streams of revenue
Average customer spend
Labour costs
Amount spent on stock purchased for the month
Accounts payable trends and information
Accounts receivable trends and information.
Ensure you use correct financial terminology when compiling your report.
Send an email to the owner.
Compose an email to the owner and attach your report, along with all the print outs of each report you have made from the accounting software.
Ensure your email is polite and professional in nature, sent by the correct date and ask for a reply as soon as possible.
Assessment Task 2: Checklist
Students name:
Has the following been completed?
Completed successfully?
Comments
Yes
No
Access all of the financial information required to conduct an analysis of the months activities?
Correctly interpret the financial information after a thorough analysis of activities?
Correctly determine impacts on operational activities?
Identify and resolve discrepancies?
Provide the report to the owner within required timeframes?
Task outcome:
Satisfactory
Not satisfactory
Assessor signature:
Assessor name: