1. A new client, Lizzy Bennet, has just commenced a small business, and is interested in finding out how she would manage her own bookkeeping. In no more than 150 words, explain to her the double-entry bookkeeping principles.

2. What is the difference between accrual and cash methods of accounting systems?

3. Referring to the Extract from Golden Steer Policies and Procedures Manual – to whom would you refer any discrepancies you might find in the accounting records of Golden Steer?

4. What is the purpose of financial statements per the AASB101?

5. Which entities are required to prepare financial reports under Section 292 of the Corporations Act (2001)?

6. Search the Institute of Certified Bookkeepers Code of Professional Conduct (Fundamental Principles), and state what a member must not do regarding preparing any account or record.

7. With regards to the destruction of the motor vehicle, you have been requested to contact the insurer, Big Insurance Co.,  and request claim forms to start the claim process. State how you would contact them, eg letter, email, phone call, and then give an outline of what you would say during this contact.

8. What are the benefits of using charts and ratios in the presentation of financial reports?  Do you consider charts or ratios to be more useful to the business owner? Why?

9. Create a chart to display the breakdown of expenses for Golden Steer using the information from the Income Statement (refer to Assessment Task 2B once complete).  Write a brief analysis of  the expenses for the year using your chart.

10. Provide a brief description of three methods of calculating depreciation.

11. What does the AASB’s Interpretation 1031 say about the recognition of revenues, expenses and assets?

12. a) S. Golden is considering creating a Provision for Doubtful Debts. He thinks it should be 2% of the balance in Accounts Receivable, and would like you to advise how much this would be for this year (estimate to the nearest $100).

b.) If the Accounts Receivable balance was to increase in the next year by 10%, how much would the Provision for Doubtful Debts now have to be (estimate to the nearest $100).

13. What effect does creating the Provision for Doubtful Debts have on profit?

Task 2