- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Hi,
Referring to THE ADVERANE GROUP (MAR/JUN 18).
In question B, the requirement is to show how the inter?group transfers will take place.
Settlement term is as follows: “the company owing the largest net amount in Swiss francs will first settle with the company owed the smallest net amount in Swiss francs”
As per the calculations, my understanding is that Adverance Co owes the SMALLEST NET AMOUNT – actually, it has a receivable of 16.09 mln.
In the answer, they say that DIling has the smallest amount owed – actually, it has receivable of 0.86 mln only.Did I understand the settlement term incorrectly? Why is my understanding incorrect?
Thanks,
GigaI think maybe you are confusing the words ‘owing’ and ‘owed’.
For example, the first line in the table given the question means that Adverane (Switzerland) is owing CHF15.90, and Bosha is owed CHF15.90.
- The topic ‘THE ADVERANE GROUP (MAR/JUN 18)’ is closed to new replies.