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Economics, Accounting & Business: Post your doubts here!

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David Hussey @::A^
upload_2014-4-26_21-35-23.png
according to IAS 10 we hav to include proposed dividend as a note but here the answer is B o_O
upload_2014-4-26_21-36-59.png
and how to do this ?
btw this is may june 2011 ppr 32
 
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And also why the tariff might not be effective in helping to correct the current account deficit?
Hw can tariffs raising revenue fr the government help to correct the current account deficit?
 
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David Hussey @::A^
View attachment 40279
according to IAS 10 we hav to include proposed dividend as a note but here the answer is B o_O
View attachment 40280
and how to do this ?
btw this is may june 2011 ppr 32

for the first question

All the dividends payable within the financial year are recorded.... this includes all dividends payable within the year 1 April 2009 -31 May 2010.
so the ans. is 100+50 = 150 and ans. is B.

for the second question

p
roduction = sales + closing inventory - opening inventory
= 200000 + (200000 * 9%) - 26000
= 192000 so the ans. is B.
 
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Whats the correct formula to find net debts ??
Net%20Debt.gif
this formula didnot work for
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w10_qp_42.pdf
Question 2 Part C)
Should we not put the current liabilities as short term Debt o_O ??
David Hussey

Net Debt = Total Non Current liabilities - Cash and Cash equivalents
 
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for the first question

All the dividends payable within the financial year are recorded.... this includes all dividends payable within the year 1 April 2009 -31 May 2010.
so the ans. is 100+50 = 150 and ans. is B.

for the second question
p
roduction = sales + closing inventory - opening inventory
= 200000 + (200000 * 9%) - 26000
= 192000 so the ans. is B.
That is correct but that dividend is not given in the notes to account. The proposed dividend is given in notes to account, if I am not wrong?
 
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What are the benfits of tariffs which helps to reduce the current acc deficit?
Quickly
Tariff is an amount of indirect tax placed upon the imported goods and services. It is a measure of protectionism and thus creates the imports expensive. This leads to fall in the quantity demanded for Imports. (Law of Demand)

And also why the tariff might not be effective in helping to correct the current account deficit?
Hw can tariffs raising revenue fr the government help to correct the current account deficit?
Tariff might not be effective in remedial of current account because some goods tend to posses in-elastic Price elasticity of demand. Even when the price rises of imported goods and services, the quantity demanded would be very in significant.
 
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Tariff is an amount of indirect tax placed upon the imported goods and services. It is a measure of protectionism and thus creates the imports expensive. This leads to fall in the quantity demanded for Imports. (Law of Demand)


Tariff might not be effective in remedial of current account because some goods tend to posses in-elastic Price elasticity of demand. Even when the price rises of imported goods and services, the quantity demanded would be very in significant.

Thanks by the way can u list a few poits hw tariff wud be effective in hw it will help to correct the current account balance?
One thnig dumping , then about the domestic producers can increase their output and wud start exporting. Any other points?
 
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Thanks by the way can u list a few poits hw tariff wud be effective in hw it will help to correct the current account balance?
One thnig dumping , then about the domestic producers can increase their output and wud start exporting. Any other points?
It would be effective when the PED of imports is Elastic. The purpose of tariff is not to generate revenue for the government but to act as a protectionism against the misuse of trade. When tariff is imposed, the demand for imported goods and services would fall leading to lower volume of imports. When import is lower and export is higher, the balance of payment would turn surplus. It would, however, be only effective when government supports and encourages exporters and regulates them so that high quality product is produced. Or else, the tariff policy would fail.
 
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