end of year exam Flashcards
1
Q
5 key legal requirements
A
- registering business name
- registering domain name
- trade practices legislation (TPL)
- business tax compliance (BTC)
- work safe insurance
2
Q
process of registering business name
A
- will need to register name unless of the owners’
- go to ASIC website
- check if name is taken
- apply for ABN
- check name is not trademark
3
Q
what act is a part of the trade practices legislation?
A
CCA (competition and consumer act)
4
Q
who is the CCA administered by?
A
ACCC (australian competition and consumer commission)
5
Q
define taxation
A
the compulsory payment of a proportion of earnings to the government
6
Q
what does the ATO do?
A
- administers & collects tax to government
- superannuation
7
Q
examples of tax a business has to pay
A
- GST
- payroll tax
8
Q
what does OH&S do
A
laws to remove hazards and prevent accidents. all workplaces need to have OH&S
9
Q
explain role of accountants
A
- prepare paperwork
- financial records - record keeping
- tax reports
- set up financial systems
- (bookkeepers are alternative to accountants)
10
Q
5 external professionals
A
- accountant
- financial advisor
- ict specialist
- legal advisor
- marketing advisor
11
Q
3 factors of business finance
A
- bank accounts
- financial control systems
- record keeping strategies
12
Q
why establish different bank accounts?
A
- separate legal entity
- easier to monitor financial performance & position of business
- calculate business expenses
- less time consuming/costly to prepare tax returns
13
Q
factors to consider when choosing right bank account
A
- bank fees
- interest rates
- overdraft facility
- convenience / support
14
Q
how can you improve cash flow?
A
- reduce expenses (more in less out)
- budgeting (planning bills)
- offering discounts for early payments
15
Q
financial control systems:
A
- auditing
- accounts receivable
- budgeting
- cash flow
- inventory control
(AABCI)
