1. When owning and operating any business, whether it's a caf or a pool cleaning business, it's very important that you know exactly what your income and expenditure is. Is your business making money or not? List eight financial records that will provide you with this information.
2. Of the many financial records you can reference (refer Q1), which documents would you access if you needed to work out ...?

How much I am paying my staff
Items purchased using a credit card
Amount paid to my suppliers
Cash flow through the business via deposits and withdrawals

1. There are many different types of budgets to suit the different types of business operations. List the eight types of budgets you could use.
2. Operational/departmental budgets are generally short-term budgets which forecast revenue and/or expenses. List four documents that will help give you a clear understanding of where your business is at this moment in time. Explain using examples.
3. What is a cash flow budget and what is it used for?
4. What are the four main reasons budget deviations occur?
5. What factors do
6. you need to consider when deciding whether or not a budget deviation should be investigated further?
7. List four options you might consider to help manage budget deviations effectively.
8. What is a budget and how does it help a business achieve its goals?definition and purpose ?
9. What is the difference between a fixed (static) and flexible (variable) budget?
10. What are the formulas used to calculate a budget variance and a budget variance percentage?
11. Indicate if the following budget results are a favourable or unfavourable result. Actual income is above budget- Actual income is below budget- Expenses are above budget- Expenses are below budget-
12. What information might you need to include when preparing a statistical or financial report for your supervisors in a suburban hotel which has multiple departments? List five examples.
13. What information might you need to include when preparing a formal statistical report for the management team of a large events or reception centre? List five examples.
14. How can you present reports to enable informed decision-making?
15. How do you know when to complete reports?
16. What do the following terms mean?Financial viability-

Profitability-

Liquidity-

1. List three main methods businesses use to increase their profits.
2. List two ways you can promote awareness of the importance of budget control.
3. How does promoting the importance of budget control help you achieve team or work area goals?
4. How does trend analysis help identify areas for improvement in budget performance?
5. What are two questions you should be asking when assessing existing costs and resources?
6. What approaches or possible options can you investigate further to control and improve the management of expenses in a business?
7. What approaches or possible options can you investigate further to control and improve the management of payroll expenses in a business?
8. List three approaches or possible options you can investigate further to control and improve the management of accounts payable in a business.
9. What is a budget cycle? List the three common cycles used and their dates.
10. Explain how the features of accounting software programs can assist you to manage budgets.
11. What is one benefit of using computerised systems to maintain financial records?
12. There are four basic types of expenses you record in financial documents to ensure accurate monitoring. Describe and give one example for each type.

Fixed costs-

Variable costs-

Direct costs-

Indirect costs-

Answer rating: 100% (QA)

Eight financial records 1 Income statement Profit and Loss statement 2 Balance sheet 3 Cash flow statement 4 Bank statements 5 Payroll records 6 Purchase invoices 7 Supplier statements 8 Receipts and ... View the full answer