TARC ACCA 2005

ACCA Exam Tips June 07 Part 1 collected from help of Coolly

ACCA 1.1 Exam Tips

FTC

(i) Company accounts
(ii) Consolidated balance sheet
(iii) Interpretation of accounts
(iv) Cash flow statements
(v) Accounting Standards and theory
(vi) Incomplete records
(vii) Partnership accounts

BPP

Section A - 25 compulsory MCQs (50 marks)
Each question is allocated 3.6 minutes
The examiner sets MCQs that intentionally have wide syllabus coverage but often have a similar style. Therefore lots of question practice is the best way to approach this part of the exam.

Common areas examined are year end adjustments, including calculation of accruals and prepayments, amendment of errors, bad and doubtful debts, inventory valuation and non-current assets (including depreciation). The examiner usually sets questions on reconciliations – both bank and control accounts – often by getting students to correct an existing reconciliation that has been performed by a trainee accountant. Expect to see a question on the accounting equation either in section A or B.

It would be worthwhile reviewing past MCQs on partnerships to become familiar with the examiner’s style for these questions.

A significant number of the questions will be written rather than computational. Topics examined in this way include accounting policies & estimates, regulatory framework and application of standards. However students with a good basic understanding should be able to eliminate incorrect answers and should not struggle too much with these.

Certain key areas will be examined via a number of MCQs if they are not examined in section B. Therefore students should be well prepared on the following areas: interpretation of financial statements, cash flow statements, group accounts. Based on past exams it seems to be more likely that cash flow statements will be examined this way in June.

Section B - 5 compulsory questions (8-12 marks each to a total of 50 marks)

Expect there to be a mix of computational and discursive (written) questions, normally with two written questions per paper.

Common topics for computational questions

* Consolidated Balance Sheet. - This has not been tested since Dec 05. It is always good for students to be well prepared for such a question as they have a strong chance of gaining high marks. This has been examined in December every year for the past 5 years and therefore has a good chance of coming up again this year.
* Preparation of a Balance Sheet or Income Statement - however this could be for a sole trader, partnership or limited company so students must ensure they are familiar with all the proforma formats.

* Incomplete records – Balance Sheet or Income Statement. The examiner has not tested since Dec 05 but always possible to come up as it incorporates lots of the key elements of bookkeeping such as error correction, T-accounts and journals.

* Suspense accounts - error correction and profit adjustments have been tested in the last four out of six sittings.

Topics for written questions

* Interpretation of Accounts - likely to be a discussion question with computational elements. Be prepared for a fairly open requirement: eg “calculate some profitability ratios” “Assess the company’s liquidity using ratios” which means you need to know which ratios fall under these headings and also their formulae. A large proportion of the marks will be for commenting on the ratios so students should practice questions from the P&R kit so they have a wide range of comments on ratios at their disposal.

* Accounting issues – maybe with some computations/disclosure notes – often related to accounting standards. Typical topics could be events after the balance sheet date, provisions and contingencies, intangibles. Alternatively could ask students to explain company specific items such as share capital and reserves.

* Accounting concepts and principles - a favourite of the examiner. In June 06 going concern was tested. Be aware this area may include a questions on the advantages and disadvantages of historic cost accounting – there are some good questions in the P&R kit to help practice this area.

REMEMBER TIME MANAGEMENT IS VERY IMPORTANT, 1.8 MINUTES PER MARK


ACCA 1.2 Exam Tips

FTC

The paper will consist of 25 MCQs of 2 marks each and 5 long questions of 8-12 marks each. The MCQs will vary in difficulty, but the variety will ensure that the paper reflects the syllabus. The five long questions will be a mix of (mostly) calculations and (a few) written marks. The vast majority of the marks in this paper will be for calculations.

The nine key areas of the syllabus will make up the bulk of the exam paper:
* Cost classification and behaviour.
* Material, Labour and Overhead costs.
* Absorption and Marginal Costing.
* Process Costing.
* Standard Costing (includes variances).
* CVP analysis (includes break-even).
* Pricing Methods.
* Relevant Costing
* Limiting Factors and Linear Programming

BPP

Section A – 25 MCQs (50 marks – 50%)

Expect Section A to have broad syllabus coverage. It is best to set yourself ‘multiple choice question (MCQ) tests’, to time, which include a selection of questions from different areas of the syllabus.

Section B – Five compulsory questions (Worth between 8-12 marks each – 50%)

Section B questions will be primarily computational; however, increasingly the tasks are broken down into 2-3 parts, with a written element for between 2-3 marks. Some areas we feel likely to come up are:

* Absorption Costing - Complete part of the absorption costing process (allocation / apportionment etc) or construct a P&L under either AC or MC (or both) and possibly reconcile the difference in profits. Be able to explain the different stages of absorption costing.
* Break-even - Calculate break-even or sketch a break-even chart.
* Variance Analysis - Construct an operating statement to reconcile budget profit to actual profit having calculated sales and cost variances, possibly with a slant towards overhead variances. Provide explanations for what may have caused the variances.
* Relevant Costs and Decision Making – Calculate the relevant cost of a scarce resource by applying the opportunity cost concept.
* Limiting Factor Analysis – Use linear programming to draw a graphical representation of a problem that has more than one limiting factor and interpret the result. Conclude on a contribution maximising or cost minimising solution.
* Pricing Policy - Discuss pricing policy including some calculations

REMEMBER, TIME MANAGEMENT IS VERY IMPORTANT, 1.8 MINUTES PER MARK!!


ACCA 1.3 Exam Tips

FTC

Primary Tips:
Structure – forms of Organisational Structure
Culture – Handy and comparative theories
Motivation – Herzberg and comparative theories
Role of Management
Effective Communication Practices
Management of Diversity/Equal Opportunities

Secondary Tips:
Management and Leadership
Management by Objectives
The Learning Process – Mumford and Kolb
Recruitment and Selection

BPP

In Section A there is a compulsory Scenario Question worth 40 marks, which is usually broken down into between 4-8 discrete parts. It is difficult to predict whether the examiner will remain in a mainstream core area of the syllabus or examine somewhere less obvious. However he has written an article in Student Accountant prior to most exam sittings, and often based Question 1 upon it, so it is important to keep a look out for articles right up until the exam.

In Section B there is a requirement to undertake 4 from 5 questions, each worth 15 marks. It is difficult to make tips of which areas he might examine, however, it would be worth reviewing the following topic areas:

1. Recruitment and Selection – a question in every exam to date
1. Training and development – as performance appraisal was examined in Dec. 2006
1. Effective Communication Practices – a favourite area
1. A number of topics have not been examined for a while: teams, culture, H&S

Each question is broken down into 2 -3 parts. Be careful to only answer what the examiner has asked for.

posted by Unknown @ 12:18 AM