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This form is to be completed and used as a final record of student competency. All student submissions including any
associated checklists (if any) are to be attached to this cover sheet before placing on the students file. Student results
are not to be entered onto the Student Database unless all relevant paperwork is completed and attached to this form.

Course Code: SIT60316 Unit Code: BSBFIM601

Course Title: Advanced Diploma of Hospitality Management
Unit Title: Manage finances

Student Name: Salman Tahir

Student ID No: 11875

Please attach the following documentation to this form Outcome

Assessment No: 1 Satisfactory / Not Satisfactory
Assessment Type: Worksheets

Assessor Feedback:

Assessor: I declare that I have conducted a
fair, valid, reliable and flexible assessment with
this student, and I have provided appropriate
feedback. I acknowledge that I have checked this
assessment for plagiarism (sample of check
attached) and academic dishonesty.
Name: ..............................................................
Student Plagiarism Declaration: By submitting this
assignment to the college I declare that this
assessment task is original and has not been copied or
taken from another source except where this work has
been correctly acknowledged. I have made a
photocopy or electronic copy of my assessment task,
which I can produce if the original is lost.

Signature: ........................................................ Signature: ......Salman...............................................

Date: ................................................................
Date: ...........1/5/2021.................................

BSBFIM601- Manage finances

Worksheets

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INSTRUCTIONS
 The questions are divided into sections according to the elements within the unit of
competence. There are four sections in this unit.
 You are to provide answers to each of the questions in a separate document using MS
Word or similar word processing tools. Your document should be professionally formatted
with question retyped and answered,
 You must answer all questions satisfactorily to achieve competency in the unit. The extent
of responses required will vary by question
 Your answers should be in your own words, not copied or plagiarised from any person or
source except where appropriate such as a definition, in which cases you should
reference the source.
 Ask your assessor if you do not understand a question. Whist your assessor cannot tell
you the answer, he/she may be able to re-word the question for you.
 Re-assessment: If you do not achieve the required standard, you will be given the
opportunity to be re-assessed by our Assessor. Arrangements will be made on an
individual basis. If you are deemed to be NS (Not Satisfactory), your assessor will either
ask specific questions orally, and record them with you using the supplementary evidence
sheet or you will be asked to resubmit your responses in full.
 Feedback: Your assessor will provide feedback to students after the completion of the
assessment. The assessor will explain the appeals process when required

SECTION 1: PLAN FOR FINANCIAL MANAGEMENT

Q1: List four types of financial data you should review.

 balance sheets
 income statements
 cash flow statements
 statements of shareholders' equity.

Q2: What type of budget would you refer to if you wanted to analyse revenue, cost of sales and expenses
for the business in a specific period?

The surplus budget is a condition in which revenue exceeds expenditures. Therefore, the surplus
budget is a case in which government spends less than what it has received as tax revenue account
etc. A deficit budget, on the opposite, is a situation in which government spending is higher than
income.

Q3: List four possible external factors that could contribute to profit or loss.
 Material price changes
 Labour wages changes
 Economic fluctuation
 Inventory method changes
Q4: You’re preparing to establish budgets. List three questions you might ask yourself when reviewing
the business plan prior to budget preparation.
 How much the company needs to save?
 What are the regular expenses?
 What are the long-term and short-term goals of the company?

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Q5: You’re preparing to establish budgets. List three questions you might ask yourself when reviewing
cash flow trends prior to budget preparation.
 Document the payments in cash.
 Quantify, by deducting gross payments from overall sales, the nett receipts (payments).
 Record the start of the 1st cycle of the opening cash position.
Q6: List four areas of legislation that impact on the preparation of budgets and other financial documents.
 Preparation of expenditures
 Approval of Budget
 Execution of Budget
 Evaluating the budget.
Q7: What is the minimum amount of superannuation that must be paid to comply with statutory
requirements?
9.5% of the employees’ ordinary times earnings each quarter until 30thJune 2021.
Q8: What website or department can you refer to for more information about compliance with FBT, CGT
and GST requirements?
Australian Taxation Office (ATO)
Q9: What is SBR software and how does it improve efficiency?
SBR is a software that can be utilized in many ways, maximizing the efficiency for the environment and
government departments. SBR is embedded with business/accounting applications which helps
organisations to dramatically minimise the time spent gathering documentation, filling out paperwork
and filing government reports.
Q10: Sutherland Resort purchases 12 bottles of 2004 Grange Hermitage wine for $8,470 GST inclusive.
 Calculate the GST amount.
$8,470/11 = $770

Q11: You receive payment for goods and services totalling $882,200 including GST of $80,200. All
expenses for the same period that required the payment of GST were $23,560 (excluding wages and
interest expense).
Calculate the GST liability.
GST liability= GST collected – GST paid
GST liability= $80,200 – $23,560 * 10%
GST liability=$77,844
Q12: What are bilateral and regional trade agreements?
Usually, bilateral, and regional trade agreements aim to reduce restrictions on trade among member
states by developing purchasing guarantees, lifting tariffs, import restrictions and other trading blocs. In
promoting trade and developing trading relationships, advantageous consideration is granted to the
parties to be accepted.
Q13: There are eleven different terms used to indicate different situations regarding the purchase,
movement, and shipping of goods internationally. What is the name of this collective group of terms?
International Commercial Terms (INCOTERMS)
Q14: List four tips for choosing the right financial software for your business.
 Find your criteria as well as your accounting ability.

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 You can access cloud services from any place with a reliable Internet link, and to operate them, you
do not need to buy software licences or servers.
 As the more features will bring costs to the company, be defined with the budget.
 Make the choice with your auditor's support.
Q15: List four questions you might ask yourself when reviewing software.
 Are all payroll criteria determined by the software?
 Does different individuals allow for the application?
 What financial results are you able to generate?
 How much is it going to cost, and are the advantages worth the financial investment?

SECTION 2: ESTABLISH BUDGETS AND ALLOCATE FUNDS

Q1: List four statutory requirements to consider when preparing budgets.

 Enumerated Authority
 Procedures for Internal Monitoring
 Restrictions on financial transaction amounts and forms
 Periods for documentation

Q2: What is a sales budget?

The estimate of the expectation of income/revenue that must be obtained from the items or services.

Q3: What is a profit and loss budget?

The income and cost summaries indicate the amount of revenues or revenue that we need to produce
in order to make a certain profit.
Q4: List three reasons why it’s important to record resource allocation.
 To assess production and performance.
 To control the flow of costs and cash.
 And focus on ways to change in the future.

Q5: List four sources of data you might use to determine allocations for resources.
 Revenue and expenses for the previous year.
 Consumer or distribution research: trends in costs, habits in customer spending.
 Policies and procedures for management: protocols for stock monitoring, personnel numbers, facility
and operating procedures.
 Supplier financial information: changes to contractual commitments, reimbursement terms for bills,
commodity price patterns.
Q6: You’ve decided to make a new service available at your workplace. This will require an increase in the
number of employees. Which areas of your budget are likely to be affected? (List 3)
 Wages expenses
 Profit
 Sales

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SECTION 3: IMPLEMENT BUDGETS
Q1: Why is it important to circulate budgets to other managers and supervisors?

 Managers and supervisors can help in allocating resources more appropriately to projects.
 They can review and help in decision making.
 They can help in identifying futuristic problems and can provide efficient solutions.

Q2: List four financial risk situations that could occur if you don’t have an effective risk management
system in place.

 Credit risk - By providing credit to clients, the burden corporations incur.

 Interest rate risk - The risk of volatile interest rate fluctuations affecting financial results by rising
interest costs or reducing investment returns.
 Foreign exchange risk - The possibility of variation in the exchange rate used to translate the profits
and spending of foreign currencies and assets or liabilities.
 Commodity price risk - Risk in which financial results may be adversely affected by an increase in the
cost of a resource that is a main input or output of a company.

Q3: List five ways you can prevent misappropriation of funds at your workplace.
 Utilization of orders on sales
 Regulate cash receipts
 Using unofficial audits
 Managing material and using protection mechanisms
 Carefully supervising staff

Q4: A colleague asks you the following question. ‘What does a positive expense variance mean?’ How
would you respond?
Where 'real' exceeds 'anticipated' or 'budgeted' value, a positive variance exists. For starters, real
revenues are ahead of the estimate.

Q5: Which of the following situations is favourable?

(a) Actual marketing expenses below budget
(b) Actual profit and loss below budget
(c) Actual sales results below budget
(d) Actual purchasing expense above budget

Q6: Why is it important to review cash flows?

The cash flow report is relevant as it tells the audience of the cash condition of the firm. A cash balance
analysis decides whether a corporation is in a position to pay for bank advances, buy new properties,
or pay for the operations.

Q7: List two operational issues you might develop a contingency plan for.
 Infrastructure and Facilities contingency plan

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 Management of Overheads

Q8: Your budgeted variable costs were $60,000 and the actual variable costs were $50,000. What must
you do to analyse the discrepancy?
We must analyse the cash inflows and outflows, where the supplies have been reduced or cut off.

Q9: What four principles must you follow to ensure an accurate and reliable audit trail?
 It should be compatible with recordkeeping.
 Record keeping can be trustworthy.
 There should be comprehensive recordkeeping.
 It should be handled for recordkeeping.

Q10: What is meant by ‘due diligence’?

An enquiry, audit, or analysis done to validate the truth of a matter under scrutiny is due diligence. Prior
to commencing into a contractual transaction with another entity, due diligence includes a review of
financial data.

Q11: List four qualities needed to demonstrate financial probity.

 Treat entrants in tenders reasonably and equally.
 Maintain the confidentiality of the sensitive details of tender applicants.
 Processes for auditable, open, and responsible tender and contract administration.
 Commitment from competitors in the tender.

SECTION 4: REPORT ON FINANCES

Q1: List five different report formats you might use for reporting financial information.

 Income Statement
 Statement of Changes in Equity
 Balance Sheet
 Statement of Cash Flows
 Notes to Financial Statements.

Q2: A colleague asks you the following question. ‘Should I include diagrams with my financial report? I
don’t know how formal my report should be. Can you tell me what format to use?’
How do you respond?

I would say that the graphical and textual presentations are necessary for the financial reports, as they
provide the better understandings about the sales, budget, profit and loss trends. They are explainable.
I would guide him to some legitimate resources the company use to prepare financial reports.

Q3: Outline the three steps for prioritising significant issues you identify in financial statements.
 Assessment of dependent and interdependent tasks
 Consider payment terms

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 Consider the consequences of each issue

Q4: You’ve identified a cash flow issue. What type of recommendations do you make to senior
management?
 To monitor the cash flows regularly.
 Manage invoicing appropriately.
 Stop the transactions for the moment.

Q5: When is an organisation’s financial management processes considered effective?

An organisation’s financial management processes considered effective when they are data-driven
and brings out actual decision making which can be implemented to increase the business growth.

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