The Microsoft website page was a really good help to find out how to add citations, manage sources and do bibliography entries. Word has a really helpful "Source Manager" in which you can add all the sources that you have used and it automatically creates a placeholder for it so that when you want to do citations and footnotes, so it can easily link up the citations and the sources that you have used.
Here I have added one of the sources that I want to use while writing up my report.
In the "Current List" box you can see that the program has created a placeholder for the entry.
Also the Bibliography entry has been automatically created for this particular source.
So, now I just need to keep adding the sources that I am going to use. However I need to check with my course supervisor that this is the format the bibliography needs to be in.
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