HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION INSERT UNIT CODE & NAME AND ASSIGNMENT NAME Assessment Details and Submission Guidelines Trimester T1 2019 Unit Code HC1010 Unit Title Accounting for Business Assessment Type Individual Assignment Assessment Title Financial Statements Elements and Financial Statement Analysis Purpose of the assessment (with ULO Mapping) Students are required to apply knowledge learned in class and perform independent research of the key topics. Learning Outcomes:  Familiar with and readily able to access (refer to) and integrate across: o The social role and purpose of accounting o The accounting equation and how it shapes the financial statements o General Purpose Financial Statements (GPFS) o Special Purpose Financial Statements (SPFS)  Understand how to prepare, analyse, and interpret financial ratios from GPFS  Obtain and contextualise business information for business accounting to explain and apply to business decisions  Demonstrate the ability to apply, analyse, synthesise and evaluate information from multiple sources to make decisions about the financial performance of entities including assets, liabilities, owner’s equity, revenue and expenses  Apply concepts and theories discussed on a weekly basis  Use transaction data and financial statement analysis for data-driven decision- making  Demonstrate the ability to communicate accounting information writing to a professional standard Weight 20% of the total assessments Total Marks 20 marks Word limit 1000 words Due Date 11.59pm Friday, Week 10 (Block mode 1 class – Friday in Week 8; Block Mode 2 class – Friday in Week 11) Submission Guidelines  All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.  The assignment must be in MS Word format, single spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.  Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style. Page 2 of 7 HC1010 Accounting for Business HC1010 Assignment Specifications Purpose: This assignment aims to reinforce and extend students’ knowledge and understanding of key topics in this course (HC1010) including: Statement of Financial Position, Statement of Financial Performance, Cash Flow Statement, Financial Statement Analysis, Accounting for Business Transactions through independent research and application of knowledge and skills. Assignment details: PART A Financial Ratios and Financial Statement analysis (6 marks) The following financial data relate to Big Bang Pty Ltd for the years ended 30 June Year 2019 and 30 June Year 2018. Financial item 30 June Year 2019 Year 2018 Net credit sales Cost of goods sold Cash Accounts receivable Inventory Curre.

1. HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
INSERT UNIT CODE & NAME AND ASSIGNMENT NAME
Assessment Details and Submission Guidelines
Trimester T1 2019
Unit Code HC1010
Unit Title Accounting for Business
Assessment Type Individual Assignment
Assessment Title Financial Statements Elements and Financial
Statement Analysis
Purpose of the
assessment (with ULO
Mapping)
Students are required to apply knowledge learned in class and
perform independent

2. research of the key topics.
Learning Outcomes:
integrate across:
o The social role and purpose of accounting
o The accounting equation and how it shapes the financial
statements
o General Purpose Financial Statements (GPFS)
o Special Purpose Financial Statements (SPFS)
ratios from GPFS
accounting to explain
and apply to business decisions
evaluate information
from multiple sources to make decisions about the financial
performance of entities
including assets, liabilities, owner’s equity, revenue and
expenses
data-driven decision-
making
information writing to a

3. professional standard
Weight 20% of the total assessments
Total Marks 20 marks
Word limit 1000 words
Due Date 11.59pm Friday, Week 10 (Block mode 1 class –
Friday in Week 8; Block Mode 2 class –
Friday in Week 11)
Submission
Guidelines
st be submitted on Blackboard by the due date
along with a completed
Assignment Cover Page.
12-pt Arial font and 2
cm margins on all four sides of your page with appropriate
section headings and
page numbers.
listed appropriately at
the end in a reference list using Harvard referencing style.
Page 2 of 7

4. HC1010 Accounting for Business
HC1010 Assignment Specifications
Purpose:
This assignment aims to reinforce and extend students’
knowledge and understanding of key topics
in this course (HC1010) including: Statement of Financial
Position, Statement of Financial
Performance, Cash Flow Statement, Financial Statement
Analysis, Accounting for Business
Transactions through independent research and application of
knowledge and skills.
Assignment details:
PART A Financial Ratios and Financial Statement analysis (6
marks)
The following financial data relate to Big Bang Pty Ltd for the
years ended 30 June Year 2019 and 30
June Year 2018.
Financial item 30 June Year 2019 Year 2018
Net credit sales
Cost of goods sold
Cash
Accounts receivable
Inventory
Current liabilities
$630 000
290 000

5. 18 000
70 000
130 000
105 000
$490 000
250 000
12 000
60 000
150 000
81 000
Additional information:
The amount of Accounts receivables at 30 June Year 2017 was
$78 000 (net). The inventory figure at
30 June Year 2017 was $130 000. The company provides its
credit customers 30 days to pay. The
average inventory turnover for the industry in which the
company operates is 101 days.
a. You are required to explain and calculate the following ratios
for the years ended 30 June Year
2019 and 30 June Year 2018:
– current ratio;
– quick ratio;
– accounts receivable turnover (times and in days); and
– inventory turnover (times and in days).
b. Comment on the short-term solvency, including the efficiency
of the business, given the ratio

6. results obtained in your answer in part a.
PART B. Income and Revenue (4 marks)
The core business of Green Apple Ltd involves the sale of anti-
virus software. The following took place
during the financial year ended 30 June. The company earned
$25 000 000 from the sale of software;
$3 000 000 from update downloads; and $50 000 in interest
from investing on the short-term money
market. The company also received a $2000 discount arising out
of the early settlement of a liability;
and issued shares in exchange for $500 000 cash during the
year.
Page 3 of 7
HC1010 Accounting for Business
Discuss whether the foregoing five financial items would meet
the definition of income to the
company during the year? Give reasons for your answer.
Which, if any, of the items would meet the definition of revenue
to the company for the year? Give
reasons for your answer.
PART C. Comparing balance sheet (7 marks)
ABC company and XYZ company conduct the same type of
business. Both are recently formed

7. entities. the balance sheets of the two companies as at 30 June
2020 are as follows:
ABC Company
Balance sheet
As at 30 June 2020
$ $ $ $
Assets
Current assets
Cash at bank 2 400
Accounts receivable 4 800
Total current assets 7 200
Noncurrent Assets
Office equipment 6 000
land 18 000
building 30 000
Total non-current assets 54 000
Total assets 61 200
liabilities
Current liabilities

8. Accounts payable 21 600
Loan payable due 30 September 2020 31 200
Total current liabilities 52 800
Total liabilities 52 800
Net assets 8 400
Owner’s equity
P. Cable Capital 8 400
Total owners’ equity 8 400
XYZ Company
Balance sheet
As at 30 June
2020
$ $ $ $
Assets
Current assets
Cash at bank 2 000
Page 4 of 7

9. HC1010 Accounting for Business
Accounts receivable 24 000
Total current assets 26 000
Noncurrent Assets
Office equipment 600
land 13 600
building 6 000
Total non-current assets 20 200
Total assets 46 200
liabilities
Current liabilities
Accounts payable 4 800
Loan payable due 30 September 2020 7 200
Total current liabilities 12 000
Total liabilities 12 000
Net assets 34 200
Owner’s equity
P. Cable Capital 34 200

10. Total owners’ equity 34 200
You are required to answer the following questions based on the
information provided above:
a. assuming that you are a banker and that the owner of each
business has applied for a short- term
loan of $6000 (repayable in six months), which application
would you select as being the more
favourable? Explain.
b. assuming that you are a businessperson interested in buying
one or both companies, and both
owners have indicated their intentions to sell, for which
business would you be willing to pay the
higher price, assuming you will be taking over the existing
liabilities of the company? explain.
c. if the existing owners agreed to be accountable for all
existing liabilities, how would this change
your decision in (b), if at all?
Page 5 of 7
HC1010 Accounting for Business
Marking criteria

11. Marking Criteria Weighting
Documented responses with explanations provided to each
question.
Use of appropriate and effective examples to accompany
explanations.
85% 17 marks
Evidence of research and use of appropriate refencing in the
assignment. 7.5% 1.5 marks
Written English Language competency. Coherent and logical
explanations.
Spelling, grammar, syntax, word choice, proof reading and
editing. Use of
correct format. Following submission guidelines.
7.5% 1.5 marks
TOTAL Weight 100% 20 marks
Assessment Feedback to the Student:
(Note - Students will be provided with detailed feedback on
Blackboard.
Students may also make an appointment with their respective
lecturer for
more feedback if required. Students should always review the
feedback
comments provided and view the assessment as a learning
opportunity.)

12. HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
INSERT UNIT CODE & NAME AND ASSIGNMENT NAME
Marking Rubric
Section Excellent Very Good Good Satisfactory Unsatisfactory
Part A
6 marks
Correct calculation and
effective explanation to all of
the ratios.
Exemplary demonstration of
knowledge of the topic.
Substantial relevant research
using correct referencing
conventions.

13. Application and appropriate
use of analytical skills.
Examples used are
appropriate.
(6 marks)
Correct calculation to all of
the ratios and effective
explanation to them.
Effective demonstration of
content knowledge with
sufficient research and
examples. Referencing is
noted and correctly
performed. Competent
explanations provided.
(5 marks)
Correct calculation of all
ratios and competent
explanation to them.
Sound demonstration of
content knowledge. Research
is evident and relevant to the
question. Correct referencing
is noted.
More depth of analysis
required.
No. of words is acceptable.
(4 marks)
Calculation of all ratios and
minimum explanation to

14. them.
Reasonable demonstration of
content knowledge.
Some research has been
done.
(2 - 3 marks)
No calculation or incorrect
calculation to all ratios and no
explanation or incorrect
explanation to all ratios.
Little or no demonstration of
content knowledge. No
evidence of research.
No grasp of the fundamentals.
The no. of words is
unsatisfactory.
(0 - 2 mark)
Part B
4 marks
Exemplary demonstration of
knowledge of the topic.
Substantial relevant research
using correct referencing
conventions.
Correct application and
appropriate use of

15. Knowledge. Examples used
are appropriate.
This section is within the word
limit guidelines.
(4 marks)
Effective demonstration of
content knowledge with
sufficient research and
examples. Application and use
of knowledge are noted.
Referencing is noted and
correctly performed.
No. of words is acceptable.
(3 - 3.5 marks)
Sound demonstration of
content knowledge. Research
is evident and relevant to the
question. Correct referencing
is noted. More depth of
analysis required.
(2.5 - 3 marks)
Reasonable demonstration of
content knowledge. Some
research has been done.
Referenced

16. ( 2 marks)
Little or no demonstration of
content knowledge. No
evidence of research. Little or
no referencing. No grasp of
the fundamentals. Over /
under the word limit.
(0 - 1 mark)
Page 7 of 7
HC1010 Accounting for Business
Part C
7 marks
Exemplary demonstration of
knowledge of the topic.
Substantial relevant research
using correct referencing
conventions. Correct

17. application and appropriate
use of knowledge. Examples
used are appropriate. This
section is within the word
limit guidelines.
(7 marks)
Effective demonstration of
content knowledge with
sufficient research and
examples. Application and use
of knowledge are noted.
Referencing is noted and
correctly performed. No. of
words is acceptable.
(5 - 6 marks)
Sound demonstration of
content knowledge. Research
is evident and relevant to the
question. Correct referencing
is noted. More depth of
analysis required.
(3.5 - 4.5 marks)
Reasonable demonstration of
content knowledge. Some
research has been done.
Referenced.

18. (2 - 3.5 marks)
Little or no demonstration of
content knowledge. No
evidence of research. No
application and no use of
knowledge. Little or no
referencing. No grasp of the
fundamentals. Over / under
the word limit.
(0 – 1 mark)
Overall
Of Assignment
Research,
Referencing,
Format,
Structure,
Sentence
organisation
3 marks

19. Well written. Only very minor
errors in grammar, spelling,
punctuation and syntax.
Substantial relevant research
using correct referencing
conventions.
Strong focus on the topic.
Logical and sustained
connection throughout
assignment.
(3 marks)
Effectively composed with
minor errors.
Referencing is noted and
correctly performed. No. of
words is acceptable.
Appropriate and relevant
focus on topic and content.
Logical and sustained
connection throughout
assignment.
(2.5 marks)
Competently written, but with
some errors.
Research is evident and
relevant to the question.
Correct referencing is noted.
Satisfactory focus on topic
Ideas are organised but could
be improved
(2 mark)

20. Some errors, but the written
composition is satisfactory
and understandable.
Some research has been
done. referenced.
Mostly relevant materials
included. Ideas are organised
but connections maybe
missing or incorrectly used.
(1- 1.5 marks)
Poorly written or insufficient.
No referencing or incorrect
referencing. Significantly
either over / under the word
limit.
Poor focus on topic. Irrelevant
materials are included. Ideas
are disorganised.
(0 - 0.5 mark)