In Class Tests address the need to develop the knowledge base and the skills. The questions are subtle and seek to probe whether you have understood the ideas, rather than just learnt a form of words; the skill-based questions challenge students to apply skills in cases, which have been deliberately chosen for their complexity.

The Case Study addresses the critical application of these skills. In most cases there will be a range of possible techniques, methods and tools available for any given situation. The selection of the correct tool is crucial, as any analysis based on incorrect methodology will be worthless. The critical analysis of financial statements derives from an understanding of their meaning, and a knowledge of the techniques used to construct them.

Assessment 1 Guidance

I've just put up the first assessment. There are a few areas where you need to be careful; they are all in the last paragraph:

£250 worth of stationery, £300 worth of repairs that are owed to the garage which was bought on credit- you will need to show them on the Profit and Loss Account and the Balance Sheet. Don't forget they are liabilities- money you owe.

Similarly the £500 you are owed for child care- you'll need to show that on the Profit and Loss Account and the Balance Sheet. It is income and an asset.

The £1,000 refundable deposit only appears on the Balance Sheet- it is a prepayment.

The rule that is relevant here is that these entries appear in the accounts of the year to which they relate.