How often should a business revise its budgets?

At least once per year and whenever we identify a risk

Risk management: How can we prevent the risk of staff stealing money from petty cash?

Provide access to managers / supervisors only

What is a contingency budget?

It is a set-aside budget for unexpected costs.

Which of the following is not considered Fraud

Recording a sick leave for a day you couldn't work

In Finance - what is an Audit trail?

Documented history of a transaction within a company

What are aging summaries?

Unpaid bills in accounts receivable

How do we calculate Gross Profit?

Total cash income + any other income - the cost of goods

Why do you need to circulate budget?

To assure management has a clear direction

What is a profit and loss statement?

A statement of financial performance over a period of time

studbud

BSBFIM601 Manage finances - Part 2

15 termsStudBud Administration39 plays

A basic knowledge quiz to recap on finance terminology

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
How often should a business revise its budgets?
At least every 3 months
At least every 6 months
At least once per year and whenever we identify a risk
At least once per quarter
2
Risk management: How can we prevent the risk of staff stealing money from petty cash?
Provide access to managers / supervisors only
Dismiss staff if they are caught
Send threatening emails to staff before they start
Do not ever keep petty cash on premisses
3
What is a contingency budget?
It is a set-aside budget for unexpected costs.
It is a small budget we keep for staff parties and travel
It is a risk assessment process
It is a different budget we use for paying suppliers
4
Due Diligence means reasonable steps taken by a person for committing a tort or offence
Yes
No
5
Financial discrepancies may include:
All of them
Expenditure report mismatches
Unreconciled cash flows and operating statements
Incorrect report formats
6
Which of the following is not considered Fraud
Recording a sick leave for a day you couldn't work
Using the company credit card for personal purchases
Employees writing a check for themselves
Contractors submitting invoices for hours they never worked
7
In Finance - what is an Audit trail?
Documented history of a transaction within a company
Documented history of complaints within a company
Documented future transaction within a company
Documented history of frauds within a company
8
Which of the following elements is not reviewed in a budget?
Marketing expense
Aging summaries
Cash operations
Wages expenses
9
What are aging summaries?
Unpaid bills in accounts receivable
Unpaid bills in our balance sheet
Unpaid bills in accounts payable
Unpaid bills we need to pay to the ATO
10
How do we calculate Gross Profit?
Total cash income + any other income - the cost of goods
Cost of goods - Total income + any other income
Total cash income + any other income + cost of goods
Total cash income - any other income + the cost of goods
11
Financial instances which may necessitate contingencies could include:
Unexpected legal action
Answer 1 & 2
Unforeseen recruitment costs
None of the answers
12
Why do you need to circulate budget?
To assure WHS regulations
To support your customers
To assure management has a clear direction
To support our suppliers
13
What is a profit and loss statement?
A statement of financial performance over a period of time
A financial statement which shows all the assets you own
A financial statement of performance of your equity
A financial statement which shows all the money you lost
14
what is considered as a standard rate for a contingency budget?
10%
50%
30%
2%
15
Properly maintained audit trail can be used to identify discrepancies in the financial history
No
Yes

BSBFIM601 Manage finances - Part 2 Flashcards | StudBud