- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
- Posts
I am referring to the following post
https://opentuition.com/topic/divisional-performance-18/
1. I am still not getting your point.
– You’ve said that, “They have invested more in non-current assets and it is them that generate the profit.”2.I still not understanding how explanation you’ve provided increases the net asset?
-My understanding about your explanation is that NCA may increase but on the cash decreases which at the end everything stays the same.
-In fact in the very first post, you’ve said :”non-current assets will increase and cash will decrease, so the net assets would not change.”What I wrote is correct and I said that you would still get the marks.
You then asked me what the logic was in what the examiner had done (only dealt with the increase in the non-current assets) and I said that the logic was that it is non-current assets (i.e. the machines etc) that actually earn the profits.
I cannot add any more to that!
- The topic ‘divisional performance’ is closed to new replies.