FNSACC414

Prepare Financial Statements for Non-Reporting Entities

Student WorkbookPart A: Knowledge Questions

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ASSESSMENT WORKBOOK COVER SHEETTo the candidate: Print this cover sheet and complete it by filling in all the required information and affixing your signature to the space provided. Your signature must be handwritten. Scan the completed cover sheet and submit it along with your evidence submissions. Use the filename: FNSACC414 Cover Sheet – Part A

UNIT FNSACC414

TITLE: Prepare Financial Statements for Non-Reporting Entities

WORKBOOK: Part A: Knowledge Questions

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KNOWLEDGE ASSESSMENT

Question 1

Provide two (2) differences between non-reporting and reporting entities in the space provided.

Non-Reporting Entities Reporting Entities

           

           

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Question 2

Identify two (2) types of non-reporting entities. For each type of non-reporting entity, outline two (2) of their key characteristics.

Type of non-reporting entity

Characteristics

           

           

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Question 3

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Explain why non-reporting entities must prepare financial statements.

Include in your response:

i. General purpose for preparing financial statements

ii. Legal obligations of businesses in relation to preparing financial statements

General purpose for preparing financial statements

i.      

Legal obligations of businesses in relation to preparing financial statements. Include the specific act or legislation you referred to.

ii.      

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Question 4

In your own words, describe each of the following key features of organisational guidelines relevant to preparing financial statements for non-reporting entities.

Key feature Description

Asset register and depreciation

of equipment

     

Provisions

     

Discrepancies

     

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Question 5

In your own words, describe each of the following key features of organisational procedures relevant to preparing financial statements for non-reporting entities.

Key feature Description

Bank account reconciliation

     

Prepayments and accruals

     

Stocktake

     

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Question 6

Listed below are main features of the Corporations Act. Identify whether each key feature is relevant to reporting requirements or taxable transactions by ticking the box that corresponds to your answer.

Provide a description of each key feature in no more than three (3) sentences for each using the spaces provided.

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Key Features Focus (Related to)

Description

‘Reporting entity’

concept

☐ Taxable transactions

     

Taxation of non-

reporting entities

☐ Reporting requirements

     

Key Features Focus (Related to)

Description

AASB 101 Presentation of

Financial Statements

☐ Taxable transactions

     

Good and Services Tax

(GST)

☐ Reporting requirements

     

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Question 7

Explain two (2) advantages and two (2) disadvantages for each of the following ratio and comparison techniques:

i. Profitability ratio

ii. Current ratio

iii. Vertical analysis

iv. Horizontal analysis

Profitability ratio

Advantages Disadvantages

           

Current ratio

Advantages Disadvantages

           

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Vertical analysis

Advantages Disadvantages

           

Horizontal analysis

Advantages Disadvantages

           

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Question 8

List two (2) advantages and two (2) disadvantages for each of the following methods of presenting financial data:

i. Column and bar graphs

ii. Histogram

iii. Pie charts

Column and bar graphs

Advantages Disadvantages

           

Histogram

Advantages Disadvantages

           

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Pie charts

Advantages Disadvantages

           

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OVERALL MARKING RESULT FORM (For the Assessor’s Use Only)

Assessment Details

Student’s Name:      

Student ID:      

Assessor’s Name:      

Workbook Part A Knowledge Questions

Unit of Competency FNSACC414 Prepare Financial Statements for Non-Reporting Entities

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BSBFIA414 Prepare Financial Statements for Non-Reporting Entities

Knowledge Assessment Result Date

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