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ACCA F9 lectures ACCA F9 notes
August 8, 2015 at 10:08 pm
I don’t understand the workings provided in the back of the notes to examples 1 and 4. It’s different to how you taught in the lecture. I get the arithmetic but could you please clarify in your earliest convenience as am sitting September session. Still got a lot to do.
p.s your lectures are great as always
John Moffat says
August 9, 2015 at 10:30 am
Have you watched the first lecture on the management of receivables (this is the second one).
In that lecture I go through example 1 (which is ‘simple’ discounts)and the answer is the same as in the current edition of the free lecture notes.
August 9, 2015 at 1:26 pm
yes, I watched the first lecture and I understand how you arrived at it. I checked the answer in the back, it is presented different. I understand the arithmetic but I want to know which way is acceptable in the Exam? Thanks
p.s i downloaded the notes once more to double check
August 9, 2015 at 3:33 pm
I don’t understand. Both the lecture and the answer at the end of the lecture notes end up with an effective annual cost of 27.75%.
The workings are effectively the same (although how you do your workings is not relevant – simple discounts will only be asked as an MCQ and there nobody looks at your workings)
May 4, 2015 at 5:36 am
When looking at factoring, how would you handle bad debts that existed before the factoring? In addition if the factor is only offering 80% on invoice rates at an interest rate?
May 4, 2015 at 6:59 am
Irrecoverable debts existing before using factoring would be ignored. We are looking to see if factoring would be worthwhile as a long term policy for the future. Existing bad debts would be the same whether or not we decided to factor.
The situation where the factor charges interest on advances is dealt with in the revision lectures – I go through an example that it in the free revision notes.
March 3, 2015 at 2:03 pm
Where are video lectures of Example 4 & 5 (Working Capital Management- Payables Part)?
March 3, 2015 at 2:30 pm
There are no videos for those two examples because the technique is identical to that of simple discounts to receivables.
You can test yourself on them (and, of course, the answers are at the back of the Lecture Notes).
March 3, 2015 at 2:36 pm
Thank you so much sir !!!.for such a quick reply
one more thing that I want to know..the questions given in Kaplan’s complete text book are sufficient for practice .?
March 3, 2015 at 2:50 pm
You should really get an Exam Kit because they contain lots of exam standard questions (including past real exam questions), and practice is vital.
December 9, 2014 at 12:08 pm
What if 60% of the customers only account for 1% of sales. In practice, would this be accounted for?
December 9, 2014 at 5:29 pm
It doesn’t make any difference.
You cannot force the customers to take a discount. However, you will offer one if it costs less that the interest we would otherwise paying – and then we would hope that everyone would take advantage of it
December 10, 2014 at 1:49 am
I’m still unclear as the calculations are based on the percentage of customers and not the dollar amount they represent.
December 9, 2014 at 12:07 pm
Thanks in advance.
November 20, 2014 at 11:02 pm
Dear Sir Moffat,
Thank you for your grateful lectures.
I have one question.
In the example 2, when interest saved on lower receivables is calculated, new level of receivables is calculated as 20 million * 54 days/365 days.
1% of discount was offered. 60% of customers are taking the discount. So new level of receivables is 20,000,000 – 120,000 after discount.
Why is new level of receivables calculated as above, and not as follows?
(20,000,000 – 120,000discount) *54days/365 days?.
November 21, 2014 at 12:01 pm
Certainly you can subtract the discount. In some answers the examiner has subtracted the discount and in other answers he has not – he gives full marks for either.
November 21, 2014 at 9:56 pm
Thank you Mr Moffat
November 13, 2014 at 8:29 am
Sir, why do we not minus the $20k of credit control staff? and do we not need to include overdraft under cost of new policy but under benefits instead?
November 13, 2014 at 8:30 am
I mean “why do we not minus the $20k of credit control staff? and why do we not need to include overdraft under cost of new policy but under benefits instead?
November 13, 2014 at 9:34 am
The fact the we need fewer credit control staff means that we will save 20,000 if we use the factor. The saving of 20,000 is therefore listed as a benefit of using the factor.
Using the factor will mean that average receivables are reduced throughout the year (because we are collecting money faster). Therefore the overdraft will be reduced, and therefore there will be less interest payable. It is the interest saved that is listed as a benefit.
October 29, 2014 at 8:28 am
Is the net cost $46,027 ($120000-$73973) in question 2?
October 29, 2014 at 8:33 am
Yes it is. (There are answers to all of the examples at the back of the course notes – it is listed on the contents page.)
August 14, 2014 at 9:06 am
the management of recievables and payables when I tried some of previous paper exams it will become complicated how can I ease them and the lecturer said first list the costs and then the savings but that didn’t work at all exercises can you show other ways to solve them ease my understanding of this management of receivable and payables
August 14, 2014 at 9:13 am
Although you can set out your workings in different ways, the approach is always the same – we need to calculate the costs and the savings resulting from the new policy and make the decision on that basis.
Every question is worded differently and when there is a problem it is in interpreting the question.
If you have problems with any specific past exam question then do ask in the F9 Ask the Tutor forum and I will try and help.
August 14, 2014 at 8:57 am
Working Capital part at the side of recievables and payables when I tried some of previous Paper it will become complicated how can I ease them
August 14, 2014 at 6:06 am
I want to print out the F9 lecture notes, how can
August 14, 2014 at 6:29 am
If you download them first, you should be able to print them out as normal.
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