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“You’ll need (please remember this in future too) to give me the reference to the question where we are adding back $350,000 investment / rental income”
Q3 december 2013.
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f7/exampapers/int/f7int-2013-dec-q.pdf
And i have a request please do not close the question until it,s solved.I also have a request to make – if you see that I have asked you for information, is there any chance that you could respond more speedily? I left that thread open for in excess of 15 hours and only closed it 30 minutes ago.
If I leave a thread open it seems that other students feel they can ask all sorts of unrelated questions and that’s unhelpful for others that may be struggling with the same issue
In addition, please be warned that for the next 3 days my internet access will be severely limited – in one hour’s time I shall be setting off to drive >2,000 kilometers and a 24 hour ferry trip
OK?
You ask “Why? It was not a real cash flow in operating activities because it was accrued but it was a cash flow in investing activities?”
What makes you think that it wasn’t received? Why do you think it’s an accrual?
The statement of profit or loss clearly shows it as “rentals received” and the statement of financial position does not show it as a current asset receivable
So where are you getting your ideas from?
@mikelittle said:
I also have a request to make – if you see that I have asked you for information, is there any chance that you could respond more speedily? I left that thread open for in excess of 15 hours and only closed it 30 minutes ago.If I leave a thread open it seems that other students feel they can ask all sorts of unrelated questions and that’s unhelpful for others that may be struggling with the same issue
In addition, please be warned that for the next 3 days my internet access will be severely limited – in one hour’s time I shall be setting off to drive >2,000 kilometers and a 24 hour ferry trip
OK?
You ask “Why? It was not a real cash flow in operating activities because it was accrued but it was a cash flow in investing activities?”
What makes you think that it wasn’t received? Why do you think it’s an accrual?
The statement of profit or loss clearly shows it as “rentals received” and the statement of financial position does not show it as a current asset receivable
So where are you getting your ideas from?
Well previously remember i raised a question and you said we deduct income received because it,s on a accruals basis.
Yes, we do! But that doesn’t mean that the figure is not also the amount received
ALL expenses and incomes within the statement of profit or loss are presented based on an accruals basis. That is NOT the same as saying that the item is accrued ie not yet received
It seems that a brief visit to John’s F3 lectures would be time well spent where John explains the idea of accruals based accounting
OK?
Thanks Sir!
I passed my F3 and I am aware of the accruals concept.
Sometimes I mix things up.
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