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Sir
they both are more or less same questions
i just need clarification that why in two options (in question 39) they did’t adjust retained earnings in balance sheet? (as both options have effect on EPS) like they do in question 40. is there some error in it?
in case if we do adjustment in retained earning other effect will go on current assets?
should i follow question 40. is it right?
thank u in advance
The big difference between the two questions is that for BBS Stores you are effectively asked to look at the immediate effect of the proposals, so retained earnings are not adjusted, whereas in Ennea you are looking at the forecasts for the coming year and is forecast profits change then so too will the forecast retained earnings.
The answers to both questions are correct (BPP have printed the examiners own answers).
- The topic ‘question 39 BSS stores and 40 Ennea of BPP revision kit’ is closed to new replies.