Theory questions

[faso]

I know the importance of theory questions of the exam yet im neglecting them. I think part of the reason is that theres no definite answer where as for the practical there is.
Can anyone offer advice on how they approached theory questions? Thanks in advance :-)

[The_Nster]

Start off by remembering simple definitions (e.g. the definition of an asset etc. the definition of balance day adjustments etc. ) and then also consider that the question is asking for. Incorporate what the question is asking with what the definitions and you're good to go.

You pretty much answer questions in the form 1. Definition, 2. Link, where you first define the concept that the question focuses on, and then link that definition to what the question is asking for.

e.g. Referring to an accounting principle, explain why balance day adjustments for accrued expenses/revenues are necessary: (2 marks)

Definition: The reporting period principle states that all revenues and expenses and revenues should be recorded in the reporting period in which they were consumed/earned.
Link: As some expenses/revenues are consumed/earned in the current reporting period, but paid for in future reporting periods, it is necessary to adjust accounting reports via balance day adjustments to reflect the expenses/revenues actually consumed/earned in the current reporting period.

Hope that helps a little bit!