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View attachment 39889
is the marking scheme wrong > oct/nov 2006 paper 1 Question 22
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w06_ms_1.pdf
ohh ya ... my bad ..
anyway how to get D ? View attachment 39893
21 Arun wishes to invest in a business with a skilled workforce which will make a profit in each of the
next five years.
Which aspect of financial statements helps Arun to decide where to invest?
A Financial statements deal with past performance.
B Historic cost is based on objective figures.
C Non-monetary values are excluded.
D Provisions can be based on estimates.
answer is b how?
23 A company is going to sell a surplus non-current asset.
Which term describes the net book value of the non-current asset in respect of the decision to
sell?
A a fixed cost
B a stepped cost
C a sunk cost
D a variable cost
answer is c how?
but NBV changes each year by reducing depreciation. so isnt it the variable cost?For the first one... Historical cost shows the relative cost of expenses and incomes and this is the only thing that will help most in deciding the optimum invest plan so the ans. is B.
For the second one a NBV of a non-current asset is not a fixed cost as it's not incurred each year (possibly) has no effect on units and may not exist if zero units for e.g if the asset isn't owned .A stepped cost is semi variable and variable cost is wholly variable both of which depend on units. As NBV of non-current asset does not depend upon units so A,B,D aren't possible . Thus C is the ans. Sunk cost is cost already incurred and wont change or vary now which best describe the nature of NBV cost of non current assets.
i dnt get the options part :Owhich part?
PART A:-http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s10_qp_23.pdf in q3 part a ... y do v only use the additional fixed cost .. not the total fixed cost ??
and plssss tell how to do part d ?
but NBV changes each year by reducing depreciation. so isnt it the variable cost?
if purchase journal is overstated by $300, what would be the entry in the suspense account?
thanks a lot....
i will surely pray for u and ur family....
thanks i got it now.NBV changes each year but we dont keep on incurring its cost we incurred it at purchase and then its sunked
Whats the equation fr Return on Total Assets and equation fr return on net assets?
net income divided by (fixed assets+net working capital)Anyone?
net income divided by (fixed assets+net working capital)
no problemthanks
anyone?21 Arun wishes to invest in a business with a skilled workforce which will make a profit in each of the
next five years.
Which aspect of financial statements helps Arun to decide where to invest?
A Financial statements deal with past performance.
B Historic cost is based on objective figures.
C Non-monetary values are excluded.
D Provisions can be based on estimates.
answer is b how?
23 A company is going to sell a surplus non-current asset.
Which term describes the net book value of the non-current asset in respect of the decision to
sell?
A a fixed cost
B a stepped cost
C a sunk cost
D a variable cost
answer is c how?
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