What is the difference between cash and accrual accounting

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Reference no: EM131225201

Interpret financial information Written Assessment-

Learning Outline - Within this resource, you will be covering the following key topics:

Access and interpret financial information
Use and provide financial information
Use correct financial terminology.

Using these key topics as a guide, you will work with your trainer/assessor to develop your skills and knowledge. The role of your trainer/assessor is to assist and guide you through your learning journey to achieve your goals.

Answer the following questions.

1. List five examples of banking, accounting and/or management reports that are used by an organisation to monitor business and/or departmental performance. Give a brief explanation of what information is provided by each report.

2. Give a brief explanation of how the following reports are used to analyse impacts on operational activities.

Average Spend:

Covers reports:

Occupancy reports:

Wastage reports:

3. Explain why it is necessary to provide financial information on operational or departmental activities to colleagues.

4. An organisation's financial year always starts from 1 July and finishes 30 June in all countries, regardless of the nature of the business. Please indicate if this is true or false.

True or false?

5. Give a brief explanation of each of the following types of costs within a business. Include at least one example of each:

Fixed costs:

Variable costs:

Cost of sales:

6. "A subsidiary ledger is"...

Please indicate which of the below statements is correct

a) A ledger which accounts for unusual transactions such as extraordinary profit generated from the sale of an asset

b) The same as a control account (it just depends on what the organisation wishes to call it)

c) A small ledger in size (as opposed to a large ledger)

d) Contains details to support the general ledger control accounts.

7. What is the difference between a debtor and a creditor?

Debtor:

Creditor:

8. What is the difference between cash and accrual accounting?

Cash accounting:

Accrual accounting:

9. Financial reconciliations usually involve...

Please indicate which of the below statements is incorrect

a) Comparing one set of financial documents against another

b) Adjusting financial reports to account for late submissions

c) Comparing source financial documents (ie. Invoices) against financial reports / statements

d) Confirming the accuracy of co-related financial information.

10. Bank reconciliations are used to help determine...

Please indicate which of the below statements is incorrect

a) Unpresented cheques

b) The interest rate applicable to a bank loan

c) Bank charges

d) Direct debits and credits.

11. GST collected and paid by an organisation...

Please indicate which of the below statements is correct

a) Is referred to as PAYG withholding

b) Includes company tax related to financial profit-making activities

c) Must be reported as a business windfall or loss

d) Must be reported on a BAS and submitted to the ATO periodically.

12. SAP is a computerised accounting system which is best suited to large business enterprises which have multiple reporting hierarchies and a high level of reporting required.

Please indicate if this is true or false.

True or false?

13. MYOB is a computerised accounting system which is best suited to multinational enterprises which require customised reporting functionalities and detailed information with drilldown options.

Please indicate if this is true or false.

True or false?

Attachment:- Assignment.rar

Reference no: EM131225201

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