Finance Answers

FEEDBACK-The answer is incorrect. The BAS allows a business to report different taxes, some will be a credit (ATO owes money) like the GST credit in the Activity, which represents the difference between GST Collected and GST Paid.

Other taxes form liabilities (money owed to the ATO) like the PAYG Withholding in the Activity.



The difference between all the tax credits and liabilities reported in the BAS, including the FBT, is what will be either paid to the ATO or received from the ATO.

QUESTION-The activity statement allows a business to calculate obligations, allowing a single payment or refund for each reporting/ payment period, across the taxes.

For example, if in a quarterly reporting/ payment period, a business had:

· a GST credit of $15,000

· a PAYG instalment liability of $6,000

· a PAYG withholding liability of $1,500, and

· an FBT liability of $1,000

Would the business need to make any payments?

What is the impact on income when the actual sales figures are used?

calculate the loss of income using product A 12000 units


A furniture manufacturer predicts that they will sell 12,000 of product A and 8,000 of product B in the next financial period. They prepare their budget accordingly.

Meaning of Alphanumeric classification


Meaning of Chronological classification

Explain the difference between a cash flow statement and a cash flow projection.

Explain each variance calculated below:

Product

Gross profit budget ($)

Gross profit actual ($)

Variance ($)

A


2,250

2,925

675
B


3,100

3,875

775
C


6,000

4,000

-2,000
Total


11,350

10,000

-550

How will a business determine the correct lodgement requirements for its particular circumstances?

Feedback-It is fundamental that enquiries of the ATO or using a BAS Agent may be required but, have not displayed understanding of what would determine lodgement requirements (internally) for its particular circumstances

A business purchases 10 digital televisions for use in its offices. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The total cost of the acquisition was $16,500 (GST inclusive).

Describe how you would process this to comply with taxation reporting requirements. How much input tax credit could be claimed and why?

Answer-At least 50 words

Discuss the process of preparing a budget.


Question is about preparing a budget

include the budget types

Consider an example of a new car sale yard and the managers predicted that they would sell 1,400 of model A and 1,800 of model B in the fiscal year. They would prepare their budget accordingly. Sales of model A did not meet expectations and sold 1,200 units. Model B had sales rise to 2,400 vehicles for the year. The expected margin on each vehicle is $2,000 for model A and $3,000 for model B.

Calculate the predicted and actual sales mix and the impact of the variations on income.

Part way through the production process it is discovered that the cost assignment was inaccurate for product A and that there has been an underestimation of $150 per unit. They are unable to change the pricing because of contractual obligations.

What is the impact of this error in cost assignment if sales were as predicted?