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Financial Statements... Need a help please.

JK9194JK9194 New MemberRegistered Posts: 18
Hi everyone, i took a few gap years ago so i came back this year to complete aat level 4. I took my first exam which was financial statements so it was not competent yet. I know that i done a few mistakes so i managed to study whole chapters. i am revising for my next resit F.S exam on this tuesday. Right now, i am struggling to memorise these ias meanings and rules. I know that every exam will have one ias written question and also ias multiple choice questions.

Last thing about interpretation . I know these ratios very well but i don't know how to write up myself. (i always forget to say so i have to do waffle on these written questions.)

Do you have any good tips or methods on learning these ias and also writing up interpretation.

Regards
JK

Comments

  • JK9194JK9194 New Member Registered Posts: 18
    i forget to add something about myself. i do have bad memories so everything is ok expect these ias and also writing up interpretation.
  • KarenMustardTutorKarenMustardTutor NorthamptonshireRegistered, Tutor Posts: 28
    Interpretation of Ratios:

    * Start off by stating the obvious...the gross profit has improved from 23.2% to 26.7% (say)
    * Always use an evaluating word such as improved, worsened, deteriorated, good, bad. If you say the gross profit has increased you have not shown that you understand that is a good thing.
    * Look at why the change could have happened..... selling price has increased or cost of sales per unit has gone down. You can use the component parts of the formula to help you.
    * Consider the question... are there clues in the question such as 'there has been an advertising campaign'
    * I would plan your answer quickly first so that you give a consistent answer and do not contradict yourself.


    Good Luck in the exam
    JK9194
  • JK9194JK9194 New Member Registered Posts: 18
    Thank you very much for the advice. I moved to new exam date which is on 8th July. Thanks.
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