Economics, Accounting & Business: Post your doubts here!

[zainabkhann]

I need 3-4 points on how important forecasting cash flows is ? Please let me know, points have to be descriptive for me to be used in a paper 1 section A question, Thanks!

 

[Esme]

Thankyou for your reply, Can you please let me know which paper1 section b exam paper would have business finance questions? I havent seen any on my past paper book yet

Sorry I don't take Business Studies

 

[zainabkhann]

Sorry I don't take Business Studies

Oh alright no problem then, thanks anyway!

 

[Esme]

Oh alright no problem then, thanks anyway!

Glad I could help

 

[aroojshahzad]

hey, can anyone help me with Q1 of the following past paper? it will be very kind
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_w11_qp_12.pdf

 

[wajiman]

hey, can anyone help me with Q1 of the following past paper? it will be very kind
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w11_qp_12.pdf

easy as a pie, the comparison is between car and bus+train. If you read the question carefully it says:
"Given this information, what is the opportunity cost to the individual of travelling by car rather than
by bus and train?"

so the solution is add all the costs of the car , that is parking fee, petrol, wear and tear, which aggregates to $7. then add the costs of train and bus which aggregates to $5 ( we are adding them because the question stats the opportunity cost of travelling through bus AND train as the opportunity cost is the next best alternative given up. here we are seeing the benefit lost altogether if traveled by car. ). Subtract $7-$5=$2 benefit being lost if traveled by car as we are paying more than $5 which would have resulted in the $2 benefit being retained by the individual

 

[student92]

A2 act mj2011 31
A company has a return on capital employed of 20 % and an asset turnover of 2.5 times.
What was the company’s net profit ratio?
A 8 % B 16 % C 20 % D 50 %
the answer is c, how?

 

[Esme]

A2 act mj2011 31
A company has a return on capital employed of 20 % and an asset turnover of 2.5 times.
What was the company’s net profit ratio?
A 8 % B 16 % C 20 % D 50 %
the answer is c, how?

I had the same doubt. I have no idea how it's 20% !!

 

[student92]

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s11_qp_31.pdf
Q 19
b is the ocrrect answer
but i dont get it, it doesnt make sense, the cost per unit of work in progress would also increase
or is it tha they mean the cost per unit of finished goods
help please

 

[Mohammed Hassan]

guys.. plz help!
when closing stock is overvalued... net profit is overstated or understated?
and why???

Thnx in advance

 

[student92]

guys.. plz help!
when closing stock is overvalued... net profit is overstated or understated?
and why???

Thnx in advance

its overstated, this is because you are reducing the value of cost of sales if the closing stock is overvalued
for example, sales is 500, opening stock is 100 and purchases are 200, and the closing stock is i 150 ii 125
so the profit would be
1 500- (100+200-150) = 350
2 500- (100+200-125) =325

therefore, if we assume that closing stock of 150 is overstated, this then means that our profit is also overstated.
hope you understand my example!

 

[student92]

provide me with some basic business studies notes

http://sites.google.com/site/bs9707/Home/revision-notes

 

[ZainNadeem]

Anyone pls help me with this question of Capital Redemption Reserve.
Why will the answer be A ??
Capital RR should only include the amount not covered by the new issue of shares which should be 100,000 but the answer shows 25,000...

 

[Anique]

650 was supposed to be credited only once, whereas the bank has made an error and credited it twice. So we have to reduce the balance on the bank statement by the extra 650. That is why we're subtracting it.

Doesn't bank credit means subtraction of 650 twice from bank balance. To get the correct figure don't we have to add 650 oncer

 

[ZainNadeem]

can any1 help with accounting a levels p3 may/june 2009 Q12?How did we get C?

 

[student92]

Economics mj09 p3
q2 please explain me the workings
thanks
http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s09_qp_3.pdf

 

[Esme]

Doesn't bank credit means subtraction of 650 twice from bank balance. To get the correct figure don't we have to add 650 oncer

No a credit in the bank statement means it has been added. That's why you have to subtract 650 once.

 

[Esme]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s11_qp_31.pdf
Q 19
b is the ocrrect answer
but i dont get it, it doesnt make sense, the cost per unit of work in progress would also increase
or is it tha they mean the cost per unit of finished goods
help please

I didn't understand this too.

Economics mj09 p3
q2 please explain me the workings
thanks
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s09_qp_3.pdf

X and Y have 40000 on the credit side as balance brought down. Then goodwill of 24000 (48000 shared equally) is credited to X and Y's account. Next credit 30000 cash in Z's capital account. Now to write off goodwill, debit all three partners account with 16000. Also X's account has to be debited with 10000 as the car taken for personal use is treated as drawings. So the remaining balances will be :
X:- 40000 + 24000 - 16000 - 10000 = 38000
Y:- 40000 + 24000 - 16000 = 48000
Z:- 30000 - 16000 = 14000.

 

[Esme]

can any1 help with accounting a levels p3 may/june 2009 Q12?How did we get C?

This question has been asked before but nobody knows the explanation yet.

student92 do you know how to do this one ?

 

[student92]

This question has been asked before but nobody knows the explanation yet.

student92 do you know how to do this one ?

sorry, i dont get this one, it seems to me like the they forgot to print the line about about markup or somethign

anyway, it is my guess that , we get a profit of 100 000 if we use the closing stock at selling price, so now this gross profit represents a higher profit then it actually should be
so this overstated profit of 100 000 is as if we had sales revnue of 550 000( 500 of current sales revenue plus our closing stock 50 = 550)
so to get our profit for our orignal salles value of 500 000, we multiply 100 000 into 500/550 to get our answer c

i am not at all sure that this is the resoning behind this, but the er says this
Question 12 – candidates did not take into account that the closing stock was given at selling price. Thus
the total gross profit of $100 000 needs to be allocated by 10/11 to find the gross profit for the year.
( 500/550 is 10/11)
what do you think?