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Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › z-score model
hi ..simple question if you could help would be appreciated
Do we need to know the formula i.e 1.2 x1..etc..
secondly do we need to know what each one stands for..i.e retined earnings/total assets..etc
Thanks
It is unlikely that questions like this (calculation of Z-score) will appear on the exam, but even if it appears it is simple that 1.2X1+1.4X2+3.3X3+0.6X4+X5…it is simple…but it is highly unlikely, but you can’t predict Alex Watt…..
No we do not need to know the formula..if the formula is required then it will be given..:-)