Accounts; Economics; Business; Post your doubts here!

[Narcotic]

Okay somebody help me too pahleeeez.
6000 bank
Stock 500
Loan 3500


Owners capital is assets minus liabilities right?
Answer 3000 (I got this bit)


Capital employed =
Answer in the solved PP is 3000 + 3500 = 6500
Why is this? Capital employed does not have long term liabilities added to it in the financed by section of the balance sheet :O

You are mixing the financed by section of B/S and CE (Capital Employed). Financed by section can be presented in many forms. Some of them add LTL there but some presentations subtract LTL from first section of B/S. CE is the total (long term) capital that is invested in the business. (Long term is the key word here since the credit you owe to suppliers is also the money you have invested in the business but it is short term) . CE is formed by the owner's capital AND long term liability(LTL). So CE=Owner's Capital (or Net Assets) + LTL

 

[Wali Faisal]

Hello. I wanted to know how paper 1 for business 0450 should be solved like sometimes a 6 mark question in paper 1 asks for our opinion regarding
a topic for example "Gov. sometimes pass laws to make markets more competitive . Do you think that competition always brings benefits to consumers?" Do
we produce an argument and then come to a conclusion or just state our opinion (as asked) and points that will validate it. A model answer to the question above will be kewl, lel.

 

[Taha Noman]

Hello. I wanted to know how paper 1 for business 0450 should be solved like sometimes a 6 mark question in paper 1 asks for our opinion regarding
a topic for example "Gov. sometimes pass laws to make markets more competitive . Do you think that competition always brings benefits to consumers?" Do
we produce an argument and then come to a conclusion or just state our opinion (as asked) and points that will validate it. A model answer to the question above will be kewl, lel.

Was wondering the same thing solving P1!

 

[tayyab9801]

Salam everyone!
I have done my o levels in science subjects.Now in A levels i want to change my subjects and want to opt accounting,buiseness and economics.Do these subjects requires some past knowledge from o levels or they start again from basics??