Written answer question guidance

The following written questions use a range of instructional words such as identify or explain, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected. Note that the following guidance is the minimum level of response required.

Analyse when a question asks you to analyse something, you should do so in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.

Compare when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.

Contrast when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.

Discuss when a question asks you to discuss something, you are required to point out important issues or features and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.

Describe when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.

Evaluate when a question asks you to evaluate something, you should put forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.

Examine when a question asks you to examine something, this is similar to analyse, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.

Explain when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.

Identify when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.

List when a question asks you to list something, this means that you are asked to briefly state information in a list format.

Outline when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.

Summarise when a question asks you to summarise something, this means (like outline) only giving the main points. Generally, you are expected to write a response a few sentences long

Provide answers to all of the questions below:

1. Identify and explain three types of financial reports and their purpose.

2. Describe why companies may choose to develop budgets.

3. Explain the main steps in the budgeting process.

4. Explain the use of electronic spreadsheets in developing budgets and give two of their key features.

5. Explain the purpose of preparing a profit and loss statement and give two of its key features.

6. Describe three financial indicators which provide key information regarding the performance of the business.

7. Discuss benchmarking in a small business context. What is it? Why is it important?

8. This question relates to balance sheets.

(a) Explain the purpose of a balance sheet.

(b) Describe the information included in the balance sheet.

(c) Briefly discuss the process for preparing a balance sheet.

9. Discuss the importance of effective inventory control relevant to effective financial management of a small business. Include a description of how your business manages stock. If your business does not carry stock, include a description of the principles of effective stock management for a small business.

10. Explain the key requirements of each of the following pieces of legislation, regulation or code, and how they influence the financial services industry:

a. Competition and Consumer Act 2010

b. Anti-Money Laundering and Counter Terrorism Financing Acts

c. Privacy Act 1988

d. ePayments Code

e. A New Tax System (Goods and Services Tax) Act 1999