APC assessment 2 finance

APC assessment 2 Part A: Multiple Choice

1. B

2. B

3. D

4. A

5. D

6. C

7. B

8. D

9. D

10. D

11. A

12. A

13. D

14. B

15. D

16. D

17. A

18. B

19. B

20. A

21. A

22. A

23. A

24. C

25. D

26. D

27. A

28. D

29. D

30. D

APC assessment 2 Part B: Short Answer

Master budgets – This will be an annual budget for the overall fiscal year, including general estimated costs.

Operational budget – This is a budget of all the operation expenses that must be paid for.

Cash flow budget – Controlling and monitoring the cash flow is very important for keeping the business flowing smoothly.

Financial budget – Budgeting all the sales that are made and making sure that sales are profitable.

Capital budget – event and change budgeting to maximise profitability.

Cash Flows Statement is referred as lifeblood of organisation because it includes actual cash been received and paid for period of time by the organisation throughout its business activities and operations.

Monitoring and counting the cash every day and recording the figures every day.

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The two sources of data which can be used for analysis will come from the company financial reports which accountant have created and also the bank can give a good amount of information about the transactions, profits, cash and position of the company.

The data that is collected can be used in many types of financial reports and reviews which can be used to identify the financial performance in certain areas of the organisation. Different reports are used for different processes such as income statements to determine profit/loss, cash flow statements for cash availability and variance reports for differences in budgets and actual performances.

A financial plan is an overall idea of how to company is going to utilise its finances in order to improve the performance of the company. The financial plan is effective for identifying certain goals and objectives that the business aims at achieving.

It will contain:

Brief current situation

Objectives

Options and opportunities

Evaluation of opportunities

Implementation strategies

Monitoring and reviewing

Some factors that could affect a budget would include

Sales figures and projections

Market Situation

Economic Situation

Government Policies and Procedures

Competitors

Customer Trends

Seat: 160

Turnover = 80%

Sales = 128

Average money spent: $16.50

Projected Lunch Sales = $2,112 every day

Seat: 160

Turnover = 70%

Sales = 112

Average money spent: $25.50

Projected Lunch Sales = $2,856 every day

Lunch:

Days: 260

Project sales: $2,112

Annual sales = $549,120

Dinner:

Days: 312

Projects Sales: $2,856

Annual Sales: $891,072

Total Annual Sales:

$1,440,192

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