Question1

1. Explain theterm 'financial probity' and list at least two requirements to ensure financial probity.

Question2

1. In the table below, explaineach of the following accountancy principles.

Economic entity principle
Full disclosure principle
Time period principle
Conservatism principle
Cost principle

Question3

1. Detail at least five Australian, international and local legislation or conventions that are relevant to financial management at CBSA.

Question4

1. In the table below, explain each of the following requirements for the Australian Tax Office.

Goods and Services Tax
Company Tax
Pay As You Go Withholding

Question5

1. Explain the purpose of a Profit and Loss Report and compare the two different sections displayed in the profit and loss report.

Question6

1. What are the formulas used to calculate the following different types of profit, and what do they indicate?

• Gross Profit =

• Gross profit margin =

• Operating profit (EBIT earnings before interest and tax) =

• Net profit =

Question7

1. Review the financial health indicators in the table below and insert the correct formulas.

Analysis	KPI	Formula
What level of sales do I need to cover all my expenses?	Breakeven point
Is my business operating profitably?	Gross profit margin Net profit margin
Does my business have too much debt?	Debt to income ratio
Can my business survive an economic downturn?	Debt to equity ratio
Can my business afford to pay its bills?	Liquidity ratio
How much working capital should I retain in the business?	Working capital ratio
Is my business earning a worthwhile return?	Return on investment
How quickly is my stock turning over?	Inventory turnover
How many days do customers take to pay me?	Accounts receivable
How quickly am I paying invoices?	Accounts payable turnover
Are my expenses under control?	Expenses ratio

Question8

1. Research financial management software. Compare three financial software systems identifying some of the key features or functions and the types of business they are suitable for. Use the table below to record your information.

Name	Key Features	Business suitability

Question9

1. A good budget will take into account a few basic elements; without considering these elements, your budget may be incomplete. Explain the six key components of a financial budget.