Level 3 - Cash Management

Kelly7Kelly7 Well-KnownPosts: 218Registered
Hi
I have just started my level 3 and am finding the Cash Management really hard, I am having difficulty with the homework every week and when I can't find the answers it's really frustrating. I have a few questions. 1 - is anyone else finding this particularly hard? 2 - does anyone know of any useful sites to get help / tips / questions (with workings or answers)? 3 - would it be useful buying the osborne book and do them books have questions at the end of the topics?

I know there is a lot of questions there but I am really stressed over this.

Comments

  • liveprincessliveprincess Well-Known Posts: 214Registered
    Hi I only took it 2 weeks ago so I'm quite fresh with it. Maybe I could help? What are you particularly struggling with? I didn't find it difficult when I was studying it but the exam was the hardest for me so far. I used Kaplan books and found them sufficient, they have a lot of revision and practice questions. What books are you using? Did you use the studying area on the AAT website? Try not to stress as this won't help. Let us know what you're struggling with and we will try to help.
  • Kelly7Kelly7 Well-Known Posts: 218Registered
    Ahh thank you, that's really nice of you. I found the cash flow forecasts quite hard, especially if there was a few different pieces of information and you have to pick which figures to use. We've just started going over loans and interest and I have a question saying the principle amount is to be paid over 60 monthly payments and the loan has a 4% interest charge per annum calculated on the the principle amount of the loan. My answer sheet has bank loan principle repayments and bank loan interest, we haven't gone over this 'principled word and I'm not sure how I'm meant to calculate this.

    I've only been using the questions set from the college tutor so far, might invest in a book, I did look on the aat site but it only has a few different topics on there.

    Thanks for replying.

    Kelly x
  • liveprincessliveprincess Well-Known Posts: 214Registered
    HI Kelly

    with loans and interest your principle amount is the amount you borrow, ie. 60,000. If this is to be paid over 60 monthly payments then it will be 1000/month, so 12000/year. Interest is calculated on this amount so if its 10% annually then you will pay 10% X 60000 so 6000/year so 500/month = 1500/month principle amount and interest. After a year your principle amount will be less because you have paid some back so in this case 48000 and you still carry on paying 1000/month but your interest will only now be 10%X48000 so 4800/year. But in the exam they only ask about the first year.
    With regards to the cash flow forecast you're right there is a lot of info to use and you need to concentrate really hard. It's worth breaking it down and writing on paper month by month and then adding it all together. Not sure if that helps. Anything else just ask.. When is your exam? Good luck with your studies.
  • aaron0121aaron0121 Trusted Regular BirminghamPosts: 422Registered
    Hi Kelly,

    1) tbh it's been nearly a year and a half since I done cash management and it's all a bit of a blur :lol:

    2) Apart from trying the green light/practise assessments on the AAT website for practise, have you tried
    http://www.osbornebooks.co.uk/elearning, osborne provide two free practise assessments on there website
    which are really useful resources.

    3) I use the Osborne book tutorial which does provide questions at the end of each topic, with the answers being
    displayed at the end of the book. They also have a work book so if you want more practise questions you can
    also purchase this. I personally only purchased the tutorial as I found that there was enough questions provided
    in the tutorial but it's all personal preferences.

    Good luck with level 3 :)

    We're always here if you need any help

    Aaron
    AAT

    Level 2 - 2010
    Level 3 - 2011
    Level 4 - 2013

    ACCA

    F4 - 2015
    F5 - 2015
  • Kelly7Kelly7 Well-Known Posts: 218Registered
    Awww, thank you both so much, so nice of you to help!

    Liveprincess, thank you for explaining that, I've wrote that down and going to go and try my questions now.

    Aaron, I didn't know they have practice assessments on the Osborne site too, thank you for the link, I will have a look at that later.
  • rafukrafuk New Member Posts: 8Registered
    I passed Cash Management last thursday and found that test very time consuming. I was even slightly panicking in the end as I only had 30 minutes left to complete part 2. So, it was not as easy as sample tests on the aat site. Plus they added questions which I did not have in my Osbourne book. I bought that book more than 6 months ago. Apparently, Osbournes now are selling a new edition book which inlcludes all those "unexpected" questions such as calculation of cash received from the sale of noncurrent assets, etc.
  • Kelly7Kelly7 Well-Known Posts: 218Registered
    Oh no, eve more stressed now but thank you for replying and well done for passing.
    Is the new book called anything different do you know? X
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