Managing resources

Question 1

what is the purpose of internal controls

Answer 1

1. prevent errors
2. detect errors
3. prevent theft and fraud
4. increase efficiency through budgeting principles

Question 2

what are the principles of effective internal controls

Answer 2

1. reliable competent personnel
2. verification
3. authorisation
4. Responsibility
5. Separation of duties/rotation of duties
6. adequate and accurate documents,ents and records
7. physical controls and security

Question 3

what is diminished balance

Answer 3

The cost includes the amount you paid for the asset (excluding GST if entitled to claim it) as well as any additional amounts paid for transport, installation or making it ready to use.

Question 4

what is the diminished balance formula

Answer 4

cost of asset x rate of depreciation/ 100

Question 5

what is Straight-line depreciation

Answer 5

Straight-line depreciation isthe simplest method for calculating depreciation over time. Under this method, the same amount of depreciation is deducted from the value of an asset for every year of its useful life.

Question 6

what is the Straight-line depreciation formula

Answer 6

cost of asset - residual value/ no. of years life asset