Economics, Accounting & Business: Post your doubts here!

[abrar]

AS level economics
summer 2006 paper 1
Q.no 26 explain

 

[zainabkhann]

Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production.Target pricing is not useful for companies whose capital investment is low because, according to this formula, the selling price will be understated.

Is it okey for me to just remember the names of the roles of the management, and not remember what each role does? Would a question ever come up regarding the description of the management roles?

 

[MONJUR HASAN NISHAD]

Accounting Oct/Nov 2007 P1 Question 23! I can't figure it out! How on earth is the answer B? What the hell is loan stock? Help me out guys!

 

[Arpit Farkya]

3 In 2002 there was a dangerous virus in China which caused many deaths. By July 2003 China
had eliminated the virus and, as a result, there was a revival in tourism and consumer spending.
Retail sales rose at the fastest pace for six months.
(a) Explain the effect of a rise in consumer spending on China’s national income
in drawing the aggregate expenditure shift , will there be a parallel shift due to MPC or a change in y-intercept due to autonomous consumption

 

[Arpit Farkya]

3 In 2002 there was a dangerous virus in China which caused many deaths. By July 2003 China
had eliminated the virus and, as a result, there was a revival in tourism and consumer spending.
Retail sales rose at the fastest pace for six months.
(a) Explain the effect of a rise in consumer spending on China’s national income
in drawing the aggregate expenditure shift , will there be a parallel shift due to MPC or a change in y-intercept due to autonomous consumption

Immediate help required !!! pls help me out with the question !!

 

[VelaneDeBeaute]

Immediate help required !!! pls help me out with the question !!

Autonomous consumption doesn't rise; it would have been similar at both the times. It is the MPC which would change (actually increase) since the total income has risen. It is worth noting that due to tourism revival, investment has also increased and I being a component of the AE will also have an impact upon the shifting of the curve. Hence, the shifting is not entirely dependent upon CS.

 

[Sarkerms]

Accounting Oct/Nov 2007 P1 Question 23! I can't figure it out! How on earth is the answer B? What the hell is loan stock? Help me out guys!

A loan stock is the same thing as a loan, its treated as a long term liability. As for the answer i am getting C but MS shows B. I guess the MS is wrong or else please someoe clarify.

 

[Sarkerms]

Ok i really want to know something. In A level Business we get questions from strategic management chapters. Can anyone please briefly explain how to frame the whole thing, like what concepts should we keep in mind while framing the answer? Would be very helpful.

 

[SalmanPakRocks]

Okay, I've this confusion.
It's related to accounting, when a Non-current asset is revalued, the depreciation on the previous cost is eliminated or not? Because I think it's eliminated and revaluation reserve is credited. Also I found a mistake in CIE Accounting MCQ, it's in Oct/Nov 2012 Paper 12. It's MCQ no.19.
Non-cummulative preference shares - if dividend is not paid are not carrried forward to future.

 

[Sarkerms]

Okay, I've this confusion.
It's related to accounting, when a Non-current asset is revalued, the depreciation on the previous cost is eliminated or not? Because I think it's eliminated and revaluation reserve is credited. Also I found a mistake in CIE Accounting MCQ, it's in Oct/Nov 2012 Paper 12. It's MCQ no.19.
Non-cummulative preference shares - if dividend is not paid are not carrried forward to future.

The mistake part is right, I found that as well and confirmed it. As for your Query, if land is being revalued u first make the depreciation 0 and then add the further amount by which the cost price is being revalued. This increase is then used to create the revaluation reserve. On the other hand if a non current asset like the machinery or plant is being written down due to a impairment loss, we first make the cost value equal to the recoverable amount and reduce the depreciation to 0. The impairment loss is the amount by which we are reducing the cost price and that is charged as an expense to the P&L a/c. Then what we have is the recoverable amount as cost depreciation as 0 and nbv same as the cost, if the question specifies then at the year end then we charge a dep and reduce the cost price by that value to obtain the NBV. I hope my explanation isnt too complicated.

 

[zainabkhann]

Someone please explain me this: firms will be more willing to supply a product if the price rises and will supply less as the price falls, can someone please explain me this , shouldnt it be the opposite? This is under marketing page: 250

 

[SalmanPakRocks]

The mistake part is right, I found that as well and confirmed it. As for your Query, if land is being revalued u first make the depreciation 0 and then add the further amount by which the cost price is being revalued. This increase is then used to create the revaluation reserve. On the other hand if a non current asset like the machinery or plant is being written down due to a impairment loss, we first make the cost value equal to the recoverable amount and reduce the depreciation to 0. The impairment loss is the amount by which we are reducing the cost price and that is charged as an expense to the P&L a/c. Then what we have is the recoverable amount as cost depreciation as 0 and nbv same as the cost, if the question specifies then at the year end then we charge a dep and reduce the cost price by that value to obtain the NBV. I hope my explanation isnt too complicated.

Thank you so much for your explaination, can you re-explain the Machinery part, if it's okay for you?
And thanks for confirming it, I got baffled over that MCQ.

 

[Ferwine222]

Guys anyone can help me out with accounts? Firstly, how do you know what in a capital account of a partner, what's suppose to be where? And secondly with regards to process costing, how do you calculate the total cost of work in progress? pls help guys, seriously need to improve my grades!

 

[zainabkhann]

Can someone please explain me in simple words, what market share is, i dont get it at all so i need baby terms honestly.

 

[Lostsoul]

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_w10_qp_13.pdf

Question Number 4, 8 and 10.
Help please

 

[SalmanPakRocks]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w10_qp_13.pdf

Question Number 4, 8 and 10.
Help please

For question 8, It'd be B, that's because accrual is treated as prepayment, if we apply matching concept, then it should have been originally added to the Operating expenses. So we first add back the prepayment. Then add accrual. I'll solve other and let you know.

 

[SalmanPakRocks]

Someone please explain me this: firms will be more willing to supply a product if the price rises and will supply less as the price falls, can someone please explain me this , shouldnt it be the opposite? This is under marketing page: 250

Please refer to the law of supply.
It indicates that:
Price Increase = Supply Increases
Price Falls = Supply Falls.

However, it can only work if the determinants of supply are kept constant.

 

[SalmanPakRocks]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w10_qp_13.pdf

Question Number 4, 8 and 10.
Help please

As for as Question 8 is concerned, it applies a simple logic.
You see, the provision is given in the balance sheet, that means it's already deducted from the debtors figure.
Therefore, this means that net debtor at 30 June would be $46000.
Now we now that 80% of the sales were credit, so this means $280,000 would be credit sales.
Now make sales ledger control account.
b/d = 46,000 Discount allowed = 6200
Sales 280,000 Bank = 303,800
c/d 16000
So answer is B

Calculation for Discount allowed
2% discount allowed were given after which the payment was $303,800
This means that 98% payment is given, so for 100%
98 : 303800
100 : x
Therefore x = $310,000 x 2%
= $6200

 

[Lostsoul]

For question 8, It'd be B, that's because accrual is treated as prepayment, if we apply matching concept, then it should have been originally added to the Operating expenses. So we first add back the prepayment. Then add accrual. I'll solve other and let you know.

Thankyou

 

[amandeep04]

I need help in Accounting, anyone?
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_y10_sp_1.pdf
Question No. 4
and can anyone please help me in absorption and marginal costing? i seriously dont get it!
Any help would be appreciated!