• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Economics, Accounting & Business: Post your doubts here!

H

helloboy

Messages
9
Reaction score
1
Points
3
wajiman said:
then the firm will not sell below the selling price. if it could make a profit on selling price then why charge a low price. never mind, that question was confusing
Click to expand...
a firm does not willingly sell at below selling price but it uses marginal costing to assess whether to accept an order for below selling price or not. if the price is above variable cost per unit, the revenue can contribute to fixed costs. the fixed costs need to be paid even if there is no production which is why the firm may accept orders at below selling price so as to lower the losses. i guess!
 
W

wajiman

Messages
240
Reaction score
124
Points
53
Anusuya said:
Bad debts and trading wala option (1 and 2)
Click to expand...

well examiner here was quiet clever, Club and Society never have trading account except their ancillary activities have it. ie bar, restaurant etc.... as we studied club and society have income and expenditure instead of profit and loss account so A was not the right choice. As you can see the pastpapers, we have seen several question in which the subscriptions were made due and also bad debts occurred so the option was C.
 
Anusuya

Anusuya

Messages
153
Reaction score
40
Points
38
wajiman said:
well examiner here was quiet clever, Club and Society never have trading account except their ancillary activities have it. ie bar, restaurant etc.... as we studied club and society have income and expenditure instead of profit and loss account so A was not the right choice. As you can see the pastpapers, we have seen several question in which the subscriptions were made due and also bad debts occurred so the option was C.
Click to expand...
the option said clubs are allowed trade in never mentioned the trading ac.
 
M

Mohammed Hassan

Messages
182
Reaction score
56
Points
38
Anusuya said:
no effect for cash and increase for stock
Click to expand...
wajiman said:
well examiner here was quiet clever, Club and Society never have trading account except their ancillary activities have it. ie bar, restaurant etc.... as we studied club and society have income and expenditure instead of profit and loss account so A was not the right choice. As you can see the pastpapers, we have seen several question in which the subscriptions were made due and also bad debts occurred so the option was C.
Click to expand...
Welll thnx a lot guys, gd luck in the remaining papers u have :)
 
saimaiftikhar92

saimaiftikhar92

Messages
278
Reaction score
30
Points
38
wajiman said:
well examiner here was quiet clever, Club and Society never have trading account except their ancillary activities have it. ie bar, restaurant etc.... as we studied club and society have income and expenditure instead of profit and loss account so A was not the right choice. As you can see the pastpapers, we have seen several question in which the subscriptions were made due and also bad debts occurred so the option was C.
Click to expand...
YEAH JISME SUBCRIPTION WAS TO BE CREDITED AND BAD DEBTS??? THIS ONE?
 
You must log in or register to reply here.
Top