Chapter Name: Perform financial transactions
Description:This chapter discusses how to properly execute financial transactions, including payments, receipts, and record-keeping.
Purpuse:To ensure that employees are capable of handling financial transactions accurately and efficiently.
Rational:Proper management of financial transactions is critical for maintaining accurate records, minimizing errors, and ensuring compliance with financial regulations.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Analyse the cash component of income and expenditure
Examine how much actual cash is flowing in and out of the business.
Key Requirement 2: Determine the liquidity of the business
Assess the ability of the business to pay short-term obligations.
Key Requirement 3: Process payments of all fixed and variable costs
Ensure all regular business expenses are paid on time.
Key Requirement 4: Manage the debtors book to maximise collection of cash
Track outstanding customer payments and ensure timely collections.
Key Requirement 5: Manage a business bank account for cash receipts and payments
Handle daily transactions through a business bank account professionally.
Assessment Questions
Assessment 1 : The liquidity of the business is determined
Learner must assess the business’s ability to meet short-term obligations.
Assessment 2 : The cash component of income and expenditure is analysed
Learner must analyze cash transactions and flow.
Assessment 3 : Payments of all fixed and variable costs are processed
Learner must demonstrate processing monthly and fluctuating expenses.
Assessment 4 : The debtors book is managed to maximise collection of cash
Learner must track outstanding payments and implement collection strategies.
Assessment 5 : A business bank account for cash receipts and payments is managed
Learner must track deposits, withdrawals, and reconcile accounts.