manage FINANCE 1.docx - BSBFIM601 MANAGE FINANCES ASSESSMENT TASK 1 ASSIGNMENT C Question 1 a Explain in one paragraph what is the purpose of

manage FINANCE 1.docx - BSBFIM601 MANAGE FINANCES...

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BSBFIM601 MANAGE FINANCES ASSESSMENT TASK 1 - ASSIGNMENT C Question 1 a) Explain in one paragraph what is the purpose of conservatism? The conservatism principle is the general concept of recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received. Under the conservatism principle, if there is uncertainty about incurring a loss, you should tend toward recording the loss. Conversely, if there is uncertainty about recording a gain, you should not record the gain. b) What are the two key accounting that are directly relevant to gathering revenue data for statutory recording and reporting? The resource of AASB we can figure out two most important key accounting terms; Presentation of Financial Statements and Revenue, which is straightforwardly applicable in gathering revenue data for establishing statuary recording and reporting The Presentation of financial statement standard counsels the basis for presentation of general-purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. AASB 118 Revenue- according to accounting revenue standard section (118), each company needs to produce an income statement and company ever company needs to follow the revenue standard and presentation of financial statement Revenue is the income that rises if the cost of goods sold got lower of the firm. The accounting revenue standard is applied in each revenue transaction of a company. Hence, the company needs to follow each standard to prepare the cash flow, income statement and balance sheet. c) According to the AASB, what does a set of financial statements comprise? According to the AASB, a set of financial statements comprises of: Statement of financial activities at each of the year (Balance Sheet) Annual Statement of profit and loss for each financial year. Annual income Statement of the cash flows for each financial year. Changes of earning per share for a financial year. d) Review the features of off-the-shelf business management and accounting software products. The features of off-the-shelf business management and accounting software products are: ANIT KUMAR MAHARJAN C2016M0119
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BSBFIM601 MANAGE FINANCES ASSESSMENT TASK 1 - ASSIGNMENT C You get a finished product that presumably solves your problem, and don’t have to internally support the software. Regular releases of the software will presumably improve the product, and will result in improvements to your own.
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