Financial Statements

doodle123

Hi ,

I am soon to sit the financial statement exam. I was wondering that do I have to memorize all the mentioned definitions in the book including of IAS(s) word by word / are there any specific ones ( such as assets , expense , income etc ) that need to be learnt word by word /knowing the keywords and putting them in my own words will get me the marks ?

Looking forward to the responses

Thank you !

KoopaCooper

Yes, while you don't need to regurgitate the definitions word-for-word, there are some keywords in each definition that do need to be included when ask to define any terms. If you just try to wing an explanation of your own, it'll probably not go down well.

Pay particular attention to the definitions of: Asset, Liability, Income, and Expense. Others may come up, but chances are you'll be asked for one of those four.

"An asset is a thing you own that makes you money" - will get 0 marks. xD (I tried that in my first L4 class, the tutor was not impressed).

For instance, this could be a rough definition of an asset:

An asset is a resource with economic value, which a corporation or individual controls, with the expectation of receiving benefit from it in the future.

You can almost see the keywords in that sentence, can't you?