Tips for the analysis and discuss questions?

[Elucidor]

Is anyone following a certain method when answering these questions? This is the only problem i'm having with the exams at the moment

[abcdqdxD]

Cover as many points as possible, don't repeat yourself! You won't get any extra marks for saying the same thing in three different ways

E.g. Reasons for stock loss:

- theft
- shoplifting
- maybe some staff are dishonest and took stock home

[liamlizza1]

Is an analysis and a discuss question pretty much the same thing?

[abcdqdxD]

Analysis requires you interpret information then explain/comment on it.

Discuss means cover points for and against.

[liamlizza1]

Ah thanks liverpool

[Tragesty]

Look at the marks too. 6 marks, 6 distinct points!

[Elucidor]

Thanks for your response
Also, when a question asks you to assess the performance of a business, would you ever talk about profitability or liquidity when there are no ratios given on a chart? For example, a chart was given showing the trends of net profit, expenses etc.

[abcdqdxD]

You can only assess performance based on what they give you. If they gave you Debtors Turnover/Stock Turnover, then you can comment on efficiency/liquidity.

If they gave you Net Profit Margin, Return on Assets, then profitability

[Tragesty]

I can see them being sneaky and asking how a liquidity indicator affects profitability 

[Michelle94]

in which your response would be?....

i cant work it out

[mufc7]

Perhaps DTO and CTO, if debtors pay early, discount expense, and discount revenue for creditors (CTO lower), haha i think thats what i would say because they are liquidity indicators that if altered can effect profitability? haha

[Michelle94]

arent they efficiency indicators?

i thought liquidity indicators were. cash flow cover, working capital ratio and quick asset ratio

[abcdqdxD]

they affect liquidity as well, receiving cash from debtors/paying creditors involve cash at bank, thus impact on our ability to meet short term debts as they fall due, etc.

[BoredSatan]

Don't spend time trying to make a perfect answer.. Just get all the points onto the paper. The examiners are looking for your accounting knowledge not your english writing skills

[BoredSatan]

If you are struggling, brainstorm ideas onto the side of the page. Always helps to get a few more points down