Dear Accountants,
On Monday, I wrote an exam that required a lot of calculations. But guess what? All formulae required to do the calculations were provided in the formula sheet. Just turn to the formula page and apply them.
On Monday, I wrote an exam that required a lot of calculations. But guess what? All formulae required to do the calculations were provided in the formula sheet. Just turn to the formula page and apply them.
Does it now mean everyone that wrote the exam would pass? NO! What was being tested was the application of the answer that you just calculated! So, the answer is -1.63%, that's fine! But what does it mean? What decision can you make from the answer you just got?
Can you tweak a little bit to get 2.5% and what will that mean?
Application! Application!! Application!!!
We can't over emphasize this. The examiner knows that in real life, there are software/ERPs that will calculate that answer for you in seconds,
Application! Application!! Application!!!
We can't over emphasize this. The examiner knows that in real life, there are software/ERPs that will calculate that answer for you in seconds,
so why cram the formula in the first place? The major work is in interpretation of data. What the data say and what business decision you can make from them.
Today, most of us don't prepare Balance sheet, Income statement, Cashflow statement any more.
Today, most of us don't prepare Balance sheet, Income statement, Cashflow statement any more.
We just print them out from the ERP! Balanced!
If you are able to prepare these financial statements, that's awesome but please don't stop there. Take a look at the report, review the figures & provide insight.
Don't just be a preparer of financial reports, be a user!
Cheers,
If you are able to prepare these financial statements, that's awesome but please don't stop there. Take a look at the report, review the figures & provide insight.
Don't just be a preparer of financial reports, be a user!
Cheers,
