Struggling with ratios - AAT Practice assessment 1 - Q7

MOSB

Hi,

Currently revising for my Financial Statements exam next week.

Some parts I'm pretty confident about, others I'm not! Namely ratios So much to learn!

On the online Practice assessment 1 I just don't understand how to come up with the correct ratio for the ROCE question.

In my notes ROCE = Profit from Ops/Capital employed x 100
or ROCE = Profit from Ops/(Total Assets-Current Liabilities) x100

Neither of those are in the 4 drop down menu options(see attached picture). Now I know the answer as I've looked it up, but I'm not sure why or how to get to it.

It's pretty annoying as in ALL the practice examples in my study material the drop down menu choices are straightforward. I.e. if you have learned the ratios, you just choose the correct one.

Think I'm just having a bit of a panic and can't see the obvious but would appreciate some advice.

I saw another post where someone said the ratios are "easy marks" but I'm not finding that to be the case. Yikes!

Any advice or guidance would be appreciated.

Lewisham_lass

Hi!
I have just taken AAT Level 4 MADC, and struggled on exactly the same ratio . In the end my tutor explained that Total equity plus long term liabilities is the same as TALC, but you can use either in the actual exam.

MOSB

Hi,

Thankyou, noted! The notes I'm using (First Intuition) don't have enough similar tricky ratios imo. Almost guaranteed we get at least one designed to trip us up in the actual exam.

How did you find MADC exam? how does it compare to the others? I've completed Budgeting and Personal Tax, got Financial Statements next week and hope to sit Decision and control in 1 month's time. Then maybe I'll think about doing the synoptic. Having to use another exam centre as my usual one is still closed due to covid 19. ah well.

Lewisham_lass

MOSB said:

Hi,

Thankyou, noted! The notes I'm using (First Intuition) don't have enough similar tricky ratios imo. Almost guaranteed we get at least one designed to trip us up in the actual exam.

How did you find MADC exam? how does it compare to the others? I've completed Budgeting and Personal Tax, got Financial Statements next week and hope to sit Decision and control in 1 month's time. Then maybe I'll think about doing the synoptic. Having to use another exam centre as my usual one is still closed due to covid 19. ah well.

So weird we both struggled with the same ratio MOSB, in the end I decided to just accept that either method works, and after all you'd be very unlucky to get an entire question based on that one ratio, fingers crossed . I emailed my tutor to check on the ratio, as the AAT Green light was showing up a different ratio to the textbook and they explained further, you can just use either method as they are supposed to show up the same results.

MADC was okay but there was a huge question on actually re-arranging formulae which isn't my strongest point, ah well just have to wait for the results , six weeks or so to go. I normally take my exams at the FI centre actually, but had to try a new centre in East London/Isle of dogs this time, it was a really hot room (with face masks) and we had to wait standing up and the exam started half an hour late. I can recommend UKCBC to take exams if you need a new centre ( https://www.ukcbc.ac.uk/ ) who I have used once before, not as good as FI, but not as terrible as the other place , who I won't name, haha!

MADC was more difficult than the others, definitely more difficult than Budgeting for example. I have only got FSLC and the synoptic to go , so really trying to get them done asap .

Good luck with the exam, I'm sure you'll smash it!

deanc1582

Hi there,

I just seen your question and thought you might benefit from the below:

https://quizlet.com/337805134/match

I did not make this and actually found it on the forums. But I found it very useful to remember ratios especially before an exam. I struggled with ratios myself but using the link above managed to get 92% on my financial statements and got "exceeded" on the ratio sections. And once you get the hang of them you'll be fine!

Good luck for your exam!

MOSB

Thankyou Dean.

I also saw these quizlet questions and have bookmarked.

Lewisham_lass said:

MOSB said:

Hi,

Thankyou, noted! The notes I'm using (First Intuition) don't have enough similar tricky ratios imo. Almost guaranteed we get at least one designed to trip us up in the actual exam.

How did you find MADC exam? how does it compare to the others? I've completed Budgeting and Personal Tax, got Financial Statements next week and hope to sit Decision and control in 1 month's time. Then maybe I'll think about doing the synoptic. Having to use another exam centre as my usual one is still closed due to covid 19. ah well.

So weird we both struggled with the same ratio MOSB, in the end I decided to just accept that either method works, and after all you'd be very unlucky to get an entire question based on that one ratio, fingers crossed . I emailed my tutor to check on the ratio, as the AAT Green light was showing up a different ratio to the textbook and they explained further, you can just use either method as they are supposed to show up the same results.

MADC was okay but there was a huge question on actually re-arranging formulae which isn't my strongest point, ah well just have to wait for the results , six weeks or so to go. I normally take my exams at the FI centre actually, but had to try a new centre in East London/Isle of dogs this time, it was a really hot room (with face masks) and we had to wait standing up and the exam started half an hour late. I can recommend UKCBC to take exams if you need a new centre ( https://www.ukcbc.ac.uk/ ) who I have used once before, not as good as FI, but not as terrible as the other place , who I won't name, haha!

MADC was more difficult than the others, definitely more difficult than Budgeting for example. I have only got FSLC and the synoptic to go , so really trying to get them done asap .

Good luck with the exam, I'm sure you'll smash it!

Thanks. Yes I usually take my exams at FI too. Next week my exam is a place in Forest Gate in East London. Hopefully will be ok.

MOSB

deanc1582 said:

Hi there,

I just seen your question and thought you might benefit from the below:

https://quizlet.com/337805134/match

I did not make this and actually found it on the forums. But I found it very useful to remember ratios especially before an exam. I struggled with ratios myself but using the link above managed to get 92% on my financial statements and got "exceeded" on the ratio sections. And once you get the hang of them you'll be fine!

Good luck for your exam!

Hi Dean Thankyou.

Yes I also saw the post with the quizlet test. I have it bookmarked.

I'm feeling better about the exam. Like most people I'm more confident in the non written questions. I'm reasonably confident in Q1&2, 6 and now 7 (like most people according to examiners report). I think I shall start with these questions, try and get as many marks as possible and spend the time remaining on the written questions.

I still need to work on the IAS definitions, such a lot to remember!

Well done, that's a fantastic result for the exam. Do you have any more general advice for it? I'll be happy with just a pass just to get it out the way.

deanc1582

It obviously depends on how you like to study so I can’t say you’ll find this technique as beneficial as I did but hopefully you do!

I have revised for all exams by doing the AAT mocks whilst marking and making notes of where I went wrong. I then spend time writing up the information I didn’t know in large pages in a notebook I use only for revision. For example I wrote a page showing the statement of cash flow as this is something I struggled to remember. And I go over this book each time I revise and read through each page of it (make it clear and easy to read, not just pages of text). Then I tackle the AAT mock 2 and repeat the process. Eventually I end up with a book of information I previously didn’t know but due to the repetitive reading I know inside and out.

Again this may not be everyone’s ideal method, but for someone like me who study’s 2 hours per night it worked really well.

Hope this helps a little, and I even had a page for IAS numbers but I don’t remember needing it in the actual exam!

Best of luck with your exam.





> @MOSB said:
> (Quote)
> Hi Dean Thankyou.
>
> Yes I also saw the post with the quizlet test. I have it bookmarked.
>
> I'm feeling better about the exam. Like most people I'm more confident in the non written questions. I'm reasonably confident in Q1&2, 6 and now 7 (like most people according to examiners report). I think I shall start with these questions, try and get as many marks as possible and spend the time remaining on the written questions.
>
> I still need to work on the IAS definitions, such a lot to remember!
>
> Well done, that's a fantastic result for the exam. Do you have any more general advice for it? I'll be happy with just a pass just to get it out the way.