Economics, Accounting & Business: Post your doubts here!

[Muhammad Bin Anis]

Well without deducting depreciation average profit would be taken as 15000. and average investment is 75000. so ARR would be 15/75 x 100= 20%.
Average investment is calculated : 90000/2 + 30000 = 75000

you should calculate avg. investment as (90000+10000)/2 +30000 = 80000
avg. profit = 15000

then ARR = 18.75%

but the marking scheme neither has any option with 20% or 18.75%

actually the examiner is taking avg.investment as (90000-10000)/2 +30000 = 70000
which gives ARR = 21.**%

 

[SalmanPakRocks]

How does right issue and other shares affect the net current asset(working capital)?

Right Issue increases your share capital.
By seeing this entry, you'd see it's effect on net current assets:
Bank (Dr)
Share Capital (Cr)
So it increases the bank balance which is current asset.

 

[SalmanPakRocks]

someone please explain me these mcqs..
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s06_er.pdf
Q 1, 15, 19, 20, 27.

This is examiner's report, please provide the paper's link.

 

[Esme]

Please explain why the answer is C? I think they found the average figure but why is the answer not B ?

 

[Esme]

The answer is C. How or why?

 

[SalmanPakRocks]

View attachment 23582

Please explain why the answer is C? I think they found the average figure but why is the answer not B ?

It should be B?

 

[SalmanPakRocks]

View attachment 23584

The answer is C. How or why?

Stock is at selling price, so this means we should convert margin into markup and then deduct it from purchases?

 

[WayneRooney10]

Hey!
I REALLY REALLY need some notes for Standard Costing! Or can someone post all the formulas required and their explanations and stuff?!
Will be grateful for the help!

 

[cool Asviva]

This is examiner's report, please provide the paper's link.

http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s06_qp_1.pdf

 

[Esme]

It should be B?

I thought it would be B because interest for the first 2 years would be 100000 and for the other 3, 120000.

 

[Esme]

Stock is at selling price, so this means we should convert margin into markup and then deduct it from purchases?

Actually the examiner's report says we find gross profit normally. i.e 500000-450000+50000 = 100000. Then we multiply this by 10/11. 100000*(10/11) = 90909. This is how they have arrived at option C. I don't know why though. Do you have any idea?

 

[Esme]

Stock is at selling price, so this means we should convert margin into markup and then deduct it from purchases?

Also we don't know the margin or the mark up.

 

[SalmanPakRocks]

Actually the examiner's report says we find gross profit normally. i.e 500000-450000+50000 = 100000. Then we multiply this by 10/11. 100000*(10/11) = 90909. This is how they have arrived at option C. I don't know why though. Do you have any idea?

It's wrong, how can you calculate the gross profit with selling price given?

 

[SalmanPakRocks]

I thought it would be B because interest for the first 2 years would be 100000 and for the other 3, 120000.

Wait up, I'll confirm this MCQ from my tutor, he's a CA.

 

[Esme]

Wait up, I'll confirm this MCQ from my tutor, he's a CA.

Okay, let me know then

 

[zainabkhann]

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.

I know this law, but it doesnt sit in my mind, im trying to apply it to real life situations and it doesnt work, like how can supply of a company increase, if the prices of a product increase?

 

[Esme]

I know this law, but it doesnt sit in my mind, im trying to apply it to real life situations and it doesnt work, like how can supply of a company increase, if the prices of a product increase?

If the price of the product you're selling increases, you would respond to it by increasing your supply. Because now, for every unit of good that you sell you'll earn more than you did previously. It's rational.

 

[zainabkhann]

If the price of the product you're selling increases, you would respond to it by increasing your supply. Because now, for every unit of good that you sell you'll earn more than you did previously. It's rational.

I kind of understand this, but still dont at the same time, can you please tell me if i need to remember all of the sampling methods for business As exam? Is it okay if i jus study 4-5 methods?

 

[SalmanPakRocks]

I know this law, but it doesnt sit in my mind, im trying to apply it to real life situations and it doesnt work, like how can supply of a company increase, if the prices of a product increase?

It can't be applied to real life, you've to keep cetrus peribus constant for this to work.

 

[zainabkhann]

It can't be applied to real life, you've to keep cetrus peribus constant for this to work.

Can u please tell me a good simple definition for probability sampling?