Are you looking  forward on how to pass the fourth coming financial accounting Examination 2024.

Do not forget to ask questions where you find it difficult.

How to pass financial accounting Examination 2024, guidelines

Before I go deep into it, I would like to explain the meaning of financial accounting. It is the branch of accounting that deals with the study of financial institutions. It also the process of recording, analysing, summing up every transaction of a business or an organization. Financial accounting relate with mathematics and Economics. There are a set of guidelines to be followed according to the Financial Accounting Standards Board (FASB), US. It is a primary responsibility of a registered company to review the performances, progress and needs for improvement of the firm over a financial year.

The records of the transactions are done using the Double-entry method where an amount is entered twice as credit and debit.

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Eligibility to financial accounting

To be eligible in financial accounting it requires a bachelor’s or Master’s degree in a relevant field like;

  • Accounting
  • Finance
  • Business or Economics.

Though it is not necessary in  every workplace, but some financial accounting jobs need candidates that hold CPA certificate.

It takes like six years to study both bachelor’s and master’s degree. Bachelor’s degree takes like four years and master’s degree takes like two years of full time Study.

Tips on how to pass financial accounting

  1. You must be familiar with mathematics.
  2. You must have the knowledge Economics.
  3. You must be calculative. To be successful in this course, you must deal with calculations and also know some aspect of your text and understand it.
  4. Go to your teacher for further clarification . Due to you were unable to meet your teacher, where you find it difficult after study for further clarification, some fail their exams.
  5. Avoid Distractions. When you want to pass financial accounting Exam, you must avoid anything that will be a distraction to you, because distraction is what that kills person’s future.
  6. Take much time to review your notes after lecture.
  7. Understand the concepts and theory behind financial accounting. Financial accounting is the backbone of procurement studies and involves recording, classifying, and summarizing financial transactions to provide a clear picture of an organization’s financial performance. To ace your financial accounting exam, it’s crucial to understand the concepts and theories behind this subject matter.
  8. You must know your debit  and credit. When it comes to financial accounting, knowing your debits and credits is essential. It’s the foundation of any transaction in accounting, and understanding it thoroughly can help you ace your procurement studies. Debits and credits are two sides of the same coin – they represent different aspects of every transaction. In simple terms, a debit increases an asset or expense account but decreases a liability or equity account. On the other hand, a credit decreases an asset or expense account but increases a liability or equity account.

Advantages of financial accounting

  • It prevents fraud. Financial accounting is used to detect fraud or errors in the company’s transactions.
  • It provides transparency. Financial accounting provides transparency, which is essential for the success of any business.
  • It enables record keeping. Financial accounts don’t record non-monetary transactions, regardless of their importance from a business point of view.
  • It determine profitability. Financial accounting helps the company to correctly identify and systematically record transactions.
  • It helps maintain proper books of accounts and systematically documents all financial transactions of the business.

Disadvantages of financial accounting

  • Recording the exact cost. Only the Real Cost, or Historical Cost, of the Assets, is recorded in Financial Accounting.
  • Historic in nature. Due to it’s historic in nature, Financial accounting is mainly historic because it keeps track of every transaction that occurs during a specific period.
  • Lack of qualitative information. Although companies portray their numbers and finances in annual statements, a lot of qualitative data is skipped. Hence, details of the company’s industrial relations, employees’ productivity, etc. are generally missing from these statements.
  • No control on cost. It does not provide for a proper control of materials and supplies, wages, labour and overheads.
  • Incomplete knowledge of cost. From cost point of view, financial accounting is incomplete. In financial accounting, accountant does not calculate each and every product’s total cost. So, financial accounting does not help to determine the price of product of business.

Objective of financial accounting

  • The aim of financial accounting is to accurately prepare and record financial data to determine an organization’s exact performance.
  • Is to disclose the end results of the business, and the financial condition of the business on a particular date.
  • Is to help management by providing information that is used to plan, set goals and evaluate these goals.

In conclusion, if can adapt to follow the directions give on how to pass financial accounting examination, I assure you that you will get what you want.

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