Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)
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does anyone have any advise or help tips on the written questions for financial statments

does anyone have any advise or help tips on the written questions for financial statments

Answers

  • NickCraggsNickCraggs Registered, Tutor Posts: 60
    Yes, make sure you understand what the ratios are showing, and relate it back to real terms. So don't say a company is a risky investment as it is highly geared. You need to say something like "the company is financed with loans which have to be repaid each year, unlike dividends. This means that the company is unlikely to be able to raise further finance from loans in the future" If you can link this to other ratios, in this case the interest cover, you will get top marks.
    Nick Craggs FMAAT AATQB ACA, AAT Branch Member and Distance Learning Director at First Intuition

    firstintuition.co.uk/
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