Cash Management

Sharon28Sharon28 New MemberRegistered Posts: 9
HELP ive failed this exam twice now and got my retake again on thurs need to pass it its costing me a fortune, does anyone have any tips im doing the practise ones on AAT website and passing them im getting 60-90% on the green light ones too, the second paper i had was even harder than the first,
HELP !!!!!:confused1:

Comments

  • omega manomega man Trusted Regular Registered Posts: 283
    You need to greenlight 100%, nothing less will do imo.
    I exceeded in 11/12 tasks first time and met criteria in 12,good luck in your exam.
  • Jo ClarkJo Clark Font Of All Knowledge Registered Posts: 2,526
    Hello Sharon

    Have you received the feedback from your exam centre as this will help you identify your areas of weakness and those to focus on in your revision.

    The pass mark is 70% in section 1 and section 2 of the exam.

    You need to be achieveing at least 70% upwards in the greenlight tests. Have you atteempted the practice assessments on the AAT website?

    Good luck with the exam.


    JC :o
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • sdvsdv Experienced Mentor Registered Posts: 585
    Make sure you understand the difference between cash and profit and loss. eg depreciation, loss on a sale of asset, discounts allowed etc affect profit or loss but does not affect Cash(inflow/outflow)

    Make sure that you understand and can apply the principles of lagged receipts. Cash sales in the month of sales and rest spread over the following months

    Make sure that you understand and can apply the principles of lagged Payment. purchase in the current month may be based on the following month Sales. But the payment of purchase will be spread over the following months

    Make sure that you have learnt to construct the whole of the cash flow. You may get a question in which you may have to work out bank overdraft interest based on the previous months cash balance. In that case you will have to work out the closing bank balance for each month as you go along

    The last topic you must learn understand and be able apply is when there is a change in the company’s cash receipts and payment commitment. You will be given budgeted cash flow figures and then apply the new changes and work out new cash losing balances

    And finally learn how to reconcile the difference between the forecast cash flow and actual cash flow..
    Learn the above 5 topics thoroughly ie- exceed in them and you are sure to pass.

    You must also learn other topics as well because you need to answer all exam questions but don’t spend too much energy on them, but enough be able to score some marks on those topics.

    hope this helps
  • MWAUGH1983MWAUGH1983 Trusted Regular Registered Posts: 420
    Sharon28 wrote: »
    HELP ive failed this exam twice now and got my retake again on thurs need to pass it its costing me a fortune, does anyone have any tips im doing the practise ones on AAT website and passing them im getting 60-90% on the green light ones too, the second paper i had was even harder than the first,
    HELP !!!!!:confused1:

    What books are you using? I did the questions from the osborne workbook and the the kaplan revision booklet and that was pretty much it and I past first time. Though look at the feedback if possible as that will advise your weaker areas! Good luck whatever though!
  • welshwizardwelshwizard Trusted Regular South WalesRegistered Posts: 465
    Hi

    How long is it since you last sat this assessment? Before you resit, I would ensure that you are fully aware of the areas where you 'did not meet expectations' by asking your provider for a copy of your assessment feedback sheet. This assessment is one that requires understanding the relationship between cash and profit (as mentioned in another post) but also requires you to understand that, whilst sales/purchases may be made, there may be a delay in receipt/payment of cash. You also need to understand things such as increase in sales receipts is an increase in cash but a decrease in payments is also an increase in cash (Q2.1). In my opinion, this assessment should not be attempted before you have achieved a competent result in AP1 &2 as there are many things that are linked to the AP units (e.g. the effect of accruals and prepayments on cash balances.

    Practice is also critical so you become familiar with a variety of situations that you could be presented with. Remember though, you are aiming for competence and not a % correct situation. In my book, one is either competent or not competent - the idea that you pass this assessment with just 70% correct is a dangerous thing. Don't try to cut corners and rely on passing 70% of questions - aim for 100%!

    I would also advise that you take time to RTFQ (Read The Full Question) as, in my opinion, students often see what they want/expect to see in a question and not necessarily what is actually written. Take a little time to RTFQ - it really will pay dividends in teh long run.

    Good luck.
  • NicFNicF Well-Known Registered Posts: 108

    I would also advise that you take time to RTFQ (Read The Full Question) as, in my opinion, students often see what they want/expect to see in a question and not necessarily what is actually written. Take a little time to RTFQ - it really will pay dividends in teh long run.

    Good luck.

    This is very good advice for any exam. I quite often get practise questions wrong because I've not done this but I always read the question very carefully twice in the exam to ensure I answer the actual question asked. I also go back and check all my answers when I've finished as well. Only two exams I haven't done this (both level 4), one because it was mostly written tasks and I had read the questions several times while answering the questions and the other because I developed a headache at the end of the exam and couldn't concentrate. I've now taken all my exams for all levels and so far I've passed all exams first time and I'm just waiting for two more results.

    As far as passing cash management os concerned the first thing you need to get your head around is that everything is related to actual money and when it gets to the organisation. Anything that isn't actual money changing hands does not get included and when it does involve money then it is only counted when it actually changes hands.
  • James PattersonJames Patterson Trusted Regular Registered Posts: 281
    Hi Sharon,

    I personally don't like the green light, i much prefer the online practice exams. If you go through it and get the trends of each question.

    The capital cycle is simple enough: Trade Receivables - Cash - Trade Payables - Inventories.

    Over capitalisation & over trading are self explanitory but are best to read in your textbook (i use Osbourne).

    Cash Payments and receipts are good on the first online paper as you get the descriptions along with them.

    Moving averages is arithmetic with adding your sales volumes, dividing by your moving average to get the trend and finding the difference for variation.

    Rate index is also just changing arithmetic in changing what month the wages are divided by.

    Your cash and credit sales (forecasting) is just appropriat multiplication, just take your time as its easy to muddle up, write it on scrap paper as you go along online just incase. This also applies to timing of receipts.

    The later questions such as understanding of loans and overdrafts you just have to read and read....and read some more to drill them in unfortunately.


    Hope this helps a bit, just reply if you'd like me to go into more detail or if you want other advice.

    James
  • Sharon28Sharon28 New Member Registered Posts: 9
    Thanks guys yes ive had my feedback from my failed attempts and did worse on the second exam than i did on the first, ive done the green light and getting 90%, i no the practise papers on line of by heart ive got osbourne papers to do and getting them right so god knows must just have a blonde moment when it comes to this subject.

    Once again thanks for all your comments - much appreciated:001_smile:
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