Knowledge Assessment in Australia Context

1. List and describe three accounting principles.

2. Describe why the Cost principle is being progressively replaced by valuation at fair value. Provide an example to justify your answer.

3. List three current legislative Acts that impact GST, staff entitlements or taxation requirements of a business and describe, in broad terms, what each Act covers.

4. - At what annual turnover must a for-profit organization be registered for GST?

- What is the turnover amount for not-for-profit organizations?

5. What are the Australian Taxation Office's five rules for record keeping? Briefly describe each one.

6. - What are budgets used for in an organization?

- List at least 3 types of budgets in your answer and their application

7. Describe 3 types of budgeting methods and the situations in which each may be best suited or used the most.

8. - What is the purpose of the Statement of Cash flows?

- What categories of cash flows does the statement contain?

- Give at least one example for each category.

9. What are some of the benefits of using electronic spreadsheets when managing budgets and financial plans?

10. What are the two tests used to determine if a medical service is GST exempt?

11. Provide one example of a medical procedure that would not be GST exempt

12. Within a Profit and Loss Statement, what is the definition of a Direct Cost? What is the definition of an Indirect Cost?

Answer rating: 100% (QA)

1 Three accounting principles are Revenue Recognition Principle This principle dictates when revenue should be recognized in the financial statements It states that revenue should be recognized when i... View the full answer