Unit 15!!!

Mikeyabosbht
Mikeyabosbht Registered Posts: 19 Dedicated contributor ? ? ?
Guys, I don't know about you, but I am seriously getting bogged down with unit 15 "Operating a cash management and credit control system". :001_unsure:

Could anyone share there experiences of what there simulation was like. It's just it appears to be a total beast with the content you need to know. It's probably made worse by the fact I am doing it by distance learning, via the diploma pathways! Anyone can ease my worrying by saying "It's not that bad !" would really help.

On a side-note I studied A level Accounts and was wondering whether with the AAT we ever study manufacturing profit and loss, or provision for unrealised profit or club and society accounts?

I appreciate any replies.

Thanks.

Comments

  • lisagreenwood
    lisagreenwood Registered Posts: 19 Dedicated contributor ? ? ?
    Hi,

    I sat the unit 5 and 6 exams in June, really enjoyed those 2 units and passed them both. I have been studying the unit 15 myself recently and totally hate it. I find it really boring and cannot get it to sink in. I am also studying from home through Kaplan Financial.

    I keep putting off the simulation but must really get my head around this unit and give it a go. I did get 90% in the mock but used my text books for a couple of questions, so its not a true mark.

    If you sit the simulation shortly, please let me know how you get on.

    Lisa
  • Richard
    Richard Registered Posts: 373
    I took my unit 15 assessment about 6 months ago and was dreading it after reading posts on here about the AAT making them harder. However, it wasn't as bad as I was expecting it to be - the only warning I will give is that the test is very time consuming as there is a lot of writing, but at least you don't have the strict time constraints of an exam. Also, if you don't quite reach the required level you will be asked some further questions.

    I'm a distance learner, so relied on the solely on the Osborne book and the sample skills test that is on the AAT website. The book covers the syllabus well as there were no nasty suprises on the actual test!

    I hope this has eased your worrying!!

    Studying this unit will also help prepare you for the Diploma/Technician exams as budgeting and ratios are a big part of the exams.
  • nattybatty75
    nattybatty75 Registered Posts: 3 New contributor ?
    omg i thought i was the only person who was struggling with this unit. i'm doing home study with premier training using the osborne books and i've passed units 5 and 6, but i'm really slacking with cash management and ethics. i think it's because there is no set date to complete them (and there's always something more interesting and important to do!) i'm trying to concentrate on cash management and have been trying to do the "sleepy hollow" simulation, and i keep getting different answers for the 1st couple of tasks. if anyone can help it would be grately appreciated!! (feel free to pm me) :001_unsure:
  • visha
    visha Registered Posts: 218 ? ? ?
    Cash Management is the easiest simulation of the lot and it is very interesting. It is less theoretical then auditing but more of a practical nature.

    60% of the simulation concentrates on the CASH FLOW PROJECTION

    It is basically a profit and loss a/c distributed over 12 moths.

    P&L a/c is split into 3 – sales, cost of sales and expenses

    Sales – cash inflow comes in trenches eg 40% now, 30% next month 30% in 60 days

    Purchases = cash outflow in trenches eg 30% now, 35% next month 35% in 60 days

    Expenses = varies but mostly in the same month.

    The rest of the syllabus is then about

    Investing surplus cash (public and private company) current financial crunch makes this topic very interesting to talk and discuss. The advisers to the council and charities who invested their monies into the Icelandic bank clearly did not understand the cash management principles.

    Borrow funds – what would the bankers be looking for in your business plan to successfully grant you the required loan from them. – though they have not followed their prudent lending criteria that has led to our current credit crisis.

    And finally chasing debt - and all that entails in that topic.

    Loaded with the above skills you can easily prepare cash flow for your clients and easily charge between £300 and £500 per plan.

    If you want some study material to help just pm me your e-mail.
  • YEEES
    YEEES Registered Posts: 1 New contributor ?
    I would like to have some study material to help withUNIT 15 as well . :huh:
    Much appreciated.
    Thanks
  • visha
    visha Registered Posts: 218 ? ? ?
    PM me your e-mail address
  • reddwarf
    reddwarf Registered Posts: 528
    Explanation on why cash on bal sheet not in open bal. of cash flow

    We are having a difference of opinion with out tutor, or at least need an explanation (accounting theory) about why we should not reduce the bank overdraft by £1000 in till in cash shown on the bal sheet in the opening bal of our cash flow projection, Eg. (£220000) over drawn deduct 1000 cash in till open bal (£219000).

    Would someone let us know a reason so we can hang on to it?

    Thanks
  • visha
    visha Registered Posts: 218 ? ? ?
    When you are preparing a cash flow forecast you can add the cash and the bank balances together. (be consistent for the opening balance and closing balance).

    However, when you are looking at a cash balance in petty cash (or cash till) they are normally insignificant. Eg £1000 as a percentage of £220,000 is less then half a percent.

    Therefore unless the cash balance meaningfully changes the bank’s closing balance I would not include the cash balance with the bank’s overdraft.

    Further the balance in the cash/till is a necessary requirement as a cash float. For example a pub uses a significant amount of £1 coins as a part of change payable to it’s customers. They are likely to hold £500 to £700 in £1 coins in their float to keep the smooth running of their business.

    It is a necessary float requirement and therefore is considered as a required working capital. This amount can not be banked to reduce the bank’s overdraft.

    Normally all companies will bank any surplus cash into the bank asap, and especially if it has a bank overdraft.

    Hope this helps
  • Mikeyabosbht
    Mikeyabosbht Registered Posts: 19 Dedicated contributor ? ? ?
    Unit 15 easiest skills test? You're loco. I laughed hard at that one, especially doing it via distance learning.

    I have been going through the mock papers and slowly it sticks.

    Though, the mock simulation Blether Telecom at the back of the Kaplan is nothing short of brutal.

    Thanks for your replies though guys. Picking this unit up after unit 5 gave me a real nasty shock.
  • PAMDILL
    PAMDILL Registered Posts: 721 ? ? ?
    Now you have me worried, I am doing the NVQ route through Kaplan distance learning and in that route Unit 15 is in the technician's level.

    I had thought it would be not too bad a unit as I have been working in accounts in industry for over 18 years. But now it sounds like it won't.

    Had planned to leave that unit to last but might do it afte unit 8 & 9 now.
  • reddwarf
    reddwarf Registered Posts: 528
    Is there usually a production schedule to deal with?
  • reddwarf
    reddwarf Registered Posts: 528
    upped this thread for others
Privacy Policy