KK1 Flashcards

1
Q

Registering a business name

A

bus wanting to register a bus name must have a AUS company number (ACN), not free, different from ABN

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2
Q

Registering a domain name

A

a website address which represents your company in an online brand it should be easy to remember and spell

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3
Q

Trade practise legislation

A

laws created by the parliament which protect bus and the consumer of unfair market prac

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4
Q

ACCA

A

Australian Competition and Consumer Commission, that is an independent authority that promotes honesty b/w bus and consumers

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5
Q

Competition and Consumer Commission Act 2010: productsaftey

A
  • right to a refund = product unsafe
  • bus X comply / Customer right to take legal action
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6
Q

Competition and Consumer Act 2010
Price fixing -

A

Price fixing - illegal for competing bus to get together to gain dominance over customer leaving them no option but to pay high $$$

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7
Q

Competition and Consumer Act 2010

imposing min prices on retailers -

A

illegal for suppliers to attempt to set a minimum price for their products or services that retailers cant sell below purpose if attracting customers

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8
Q

Competition and Consumer Act 2010

selling goods below cost-

A

illegal to sell goods at a below-cost price fro the purpose of eliminating a comp

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9
Q

Business tax compliance

A

compulsory payment % of earnings to the gov
AUS taxation office (ATO) is un charge of collecting tax

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10
Q

Business tax compliance
Personal

A

progressive ( ▲ as the individual earns more $$$)

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11
Q

Business tax compliance

GST

A

broad based tax of 10% on most goods, services, items sold w in Aus

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12
Q

WORK SAFE INSURANCE

A

covers employers for the cost if benefit if employees are injure or become ill bc of their work

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13
Q

Why pay tax?

A

to fund things such as infrastructure, schools, roads ect which help to improve the economy

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14
Q

BAnk accounts

A

used to manage and track all money coming in and out of the business, allowing owners to jeep personal and bus transactions seperate.

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15
Q

considerations of bank acc

A
  1. IR
  2. proximity to local branch
  3. merchant services available eg eftpos facilities
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16
Q

DEbit card

A

own money from bank acc

PRO- no monthly payments or I.R.

17
Q

Credit card

A

loan from bank
PRO- credit stores
- travel/hotel discounts incentivise spending

CONS- often fees/ I.R’s / annual fee

18
Q

Financial control systems

A

used to oversee business transactions to prevent fraud and errors

19
Q

FCS helps businesses to avoid…

A
  • large financial loss
  • fraud
20
Q

BUDGETING

A

an estimation of revenue (income) and expenses over a specific time period

21
Q

AUDITING

A

AN inspecting bus accounts by an auditor to make sure the business is documenting accurately to stay compliant

22
Q

Importance of budgeting

A

-avoids large financial losses
-prevents fraud

23
Q

Record keeping strategies

A

a legal req which categorises transactions that provides info used for bus reports

must be kept for 5 years as by the ATO to make sure the business is compliant

24
Q

4 record keeping strategies are

A
  1. source docs
  2. maintain cash book
  3. prep income statement
  4. prep balance sheet
25
RKS : 1. source docs
paper/ electronic docs that provide evidence that a transaction has occurred
26
RKS : 2. maintain cash book
financial journal containing cash receipt and payments
27
RKS : 3. prepare income statement
report company financial performance over a specific accounting period, shows the revenue and expenses, and calculates net profit
28
RKS : 3. prepare balance sheet
summary of business assist and liabilities
29
policies
docs where bus ID their legal obl outlines the broad steps taken to maintain legal compliance
30
procedures
processes to implement to help bus stay compliant
31
policies pr0s
-create efficiency -efficient decision making
32
policies cons
-time consuming - require reg review