Assessment Details
- Proven ability to think and write an assignment
- Accurately perfect all accounting work related to the context of the assignment
- Improve calculation skill and analysing a range of accounting information
In addition, the assessment will test the following learning outcomes:
Demonstrate understanding of the basic principles with regard to collecting economic data and interpret, analyse and evaluate financial statements;
Demonstrate understanding of and evaluate the role of costs, cost classification and cost behaviour in the financial decision-making process;
Demonstrate understanding of the use of costs in pricing decisions and the external factors affecting price;
Describe the need for and apply the principles of working capital control.
Assessment Task
“Financial statements are a collection of summary-level reports about an organization’s financial results, financial position, and cash flows. They are written records that convey the business activities and the financial performance of a company.”
Tasks:
1. Discuss the process of preparing the financial Statements.
2. Provide a sample Income Statement and Balance Sheet of a company.
3. Analyse the given Financial Statements using profitability and liquidity ratios, explaining the importance of working capital management.
4. Discuss the cost classification by functions and by behaviour. Also, discuss how the classification of cost by behaviour helps in fixing the selling price.
Additional instructions:
- In Task 1, the student needs to provide the meaning of accounting along with explaining Journal, Ledger, Trial Balance, adjusting entries and the preparation of financial statements.
(Approximately 500 words)
- In Task 2, the student needs to provide a sample Income Statement and Balance Sheet showing the amounts. (Approximately 200 words)
- In Task 3, the student needs to give a brief meaning of ratios. From the given sample financial statements, calculate gross profit ratio, net profit ratio, current ratio and quick ratio stating the purposes of these ratios. Also, need to explain the importance of working capital management.
(Approximately 800 words)
- In Task 4, the student needs to give a brief about cost classification. Explain the classification of cost by functions and by behaviour with suitable examples. Also, explain how this classification of cost helps in fixing the selling price. (Approximately 500 words)
? At least five (5) references from different sources in Harvard Referencing style.
*** Words count 1800 words.
*** In-Text Citations and References using Harvard style.
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