Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP revision kit question 50
- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
John Moffat.
- AuthorPosts
- July 21, 2016 at 3:09 am #328127
Hi tutor,
The company has a year end 31 December and is deciding between to lease or to purchase a machine.
“If machine is purchased, payment for maintenance cost will be made in January of the first year of operation.” This means the first maintenance payment will be made in year 0, right? In the answer, however, the first maintenance payment was made in year 1.
Am I wrong here?July 21, 2016 at 7:20 am #328151I am waiting for BPP to deliver to me the current edition of the Revision Kit and so I am not sure whether or not the question will still be question 50.
If the question you are referring to is AGD, then it does not say that payment for maintenance cost will be in January of the first year of operation. The payment in January of the first year of operation must refer to the payment for the purchase of the machine.
(It would not be logical to only pay maintenance once or to pay it before the machine has even been used)
July 21, 2016 at 7:44 am #328166That makes sense, thank you for the fast response 🙂
July 21, 2016 at 2:10 pm #328220You are welcome 🙂
- AuthorPosts
- You must be logged in to reply to this topic.