Interpretation of Accounts

MarkDurc

Just wondering is there any foolproof way to do well in the theory of this question(where you are commenting on the performance of the company)? I know they can be very specific in marking them but if you write the right things i suppose you'll do well. I know the basic outline; profitability, liquidity, dividend policy, gearing, etc. I just need really specific info. What do they look for inside all of those headings?

JoeyBuddy

I just kinda wing it.
It is difficul to get full marks in it, but you could get most of them handy enough.

Basicly go through the different headings and ive maybe 2 ratio comparisons in each.
Comment on the trend, and say what it means. (Eg, Current ratio of 1.2:1 means the compan has 1.20Euro per every 1euro it owes.)

I don' knowof any foolproof ways to get full marks, but just look at marking schemes from previous papers to get an idea of what's required.

EvilLlamaThingy

The only foolproof is to write absolutely everything under every heading. Even if there's no marks on the marking scheme for it, you won't be penalised as far as I know. The issue with that though, is time.

And don't write paragraphs. Bullet point.

MarkDurc

JoeyBuddy wrote: »

I just kinda wing it.
It is difficul to get full marks in it, but you could get most of them handy enough.

Basicly go through the different headings and ive maybe 2 ratio comparisons in each.
Comment on the trend, and say what it means. (Eg, Current ratio of 1.2:1 means the compan has 1.20Euro per every 1euro it owes.)

I don' knowof any foolproof ways to get full marks, but just look at marking schemes from previous papers to get an idea of what's required.

Ya thats what i usually do, get maybe 70 or 80 marks. But I kinda need an A in Accounting for points so cant really afford that.

EvilLlamaThingy: Think i'm just gonna go for that, was planning that anyway, just write absolutely everything I can, I'm a fast enough writer. Thanks

Messi 10

Also you know the figures that you are given from the previous year? Make sure you make reference to every one of those in your part B thing. And compare it to the corresponding figure for this year and they say what the debenture holders/bank/shareholders would think of it.

Also it goes without saying that you should know all the ratio's for part a. Those are the handiest 40 or 50 marks on the exam.