No – you are reading the question wrong.
Not including an accrual simply means that at the end of the year we have forgotten to make an accrual (something that is very common in real life).
We should make the accrual, which will mean a higher expense and therefore a lower profit (or in this case a bigger loss).
I am at work at the moment anddo not have the paper with me.
However, unless a question says differently, the betas that are quoted (and published in certain magazines) are always the equity betas.
The answer is C
If you prepare a receivables account, the opening balance is 2100. Debit with credit sales – missing figure. Credit with cash received – 10000. Credit with irrecoverable debts – 450. Closing balance – 2200.
The missing figure for credit sales is 10550.
Add the cash sales of 250.
Total sales – 10800
John Moffat replied to the topic Journal entry for a credit note issued to a customer for goods returned in the forum FA2 Maintaining Financial Records Forums 15 hours, 22 minutes ago
You are welcome
John Moffat replied to the topic Journal entry for a credit note issued to a customer for goods returned in the forum FA2 Maintaining Financial Records Forums 15 hours, 40 minutes ago
I do not have the Kaplan kit.
However, unless there is more in the question then they are wrong.
A credit note is simply a ‘negative’ invoice.
(If later, they do repay cash to the customer, then later they will CR cash and DR receivables.)
John Moffat replied to the topic Journal entry for a credit note issued to a customer for goods returned in the forum FA2 Maintaining Financial Records Forums 16 hours, 56 minutes ago
The second one is the correct entry
It depends on the question.
If you are given 3-month periods, then the moving average is the average for a 3-month period. If you are given 4-month periods, then the average is the average for a 4-month period, and so on.
The problem is this…..
If they are 4-month periods, then there are three of them in a year, and the average corresponds to…[Read more]
It is legislation to try and ensure competitiveness between companies.
To stop companies having a monopoly position and to stop companies secretly fixing prices together.
If you want more detail then look on Google, but you do not need more detail for the exam.
For the exam, the most likely relevance is that it could be worth mentioning (in the…[Read more]
Dividends never ever appear on the Statement of profit or loss. (Dividends paid or declared appear in the Statement of changes in equity).
Dividends only appear in the Statement of financial position if they are owing at the end of the year. They are only owing if (obviously) they have not been paid, and if they are ‘certain’ They are only…[Read more]
The company is current earning an ROI of 15%. If they take on a new project giving a return of 16%, then the overall ROI must increase (because 16% is more than 15%).
With regard to the RI, let me make up a few figures to try and make it clear.
Just suppose that the new investment meant spending 10,000. Since it gives a return of 16%, this would…[Read more]
For the benefit of anyone else looking at this question, the following addition information was given:
Sales volume contribution variance 9,000 (F)
Sales price variance 8,000 (A)
Total variable cost variance 13,000 (F)
Fixed cost expenditure variance 4,000 (A)
We are given the actual profit, and so we need to use the variances…[Read more]
I do not know which book you are talking about. You refer to ‘the book’ but it is obviously not our Course Notes (which are the best ones to read to prepare for the exam!)
However, ‘number of invoice’ is fairly obvious – it is how many invoices there are.
Each invoice could be for more than one thing – there can be several lines on the invoice.…[Read more]
John Moffat replied to the topic FA1 Recording Financial Transactions, exam June 2014 in the forum FA1 Recording Financial Transactions Forums 2 days, 17 hours ago
Great explanations Mansoor
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