ACCA Financial Management lectures Download FM notes
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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Sir is it enough to study and understand whatever is in the lectures? Like most of it is covered in BPP material.
The lectures (together with the free lecture notes) area complete free course and cover everything needed to be able to pass the exam well.
However you do need to buy a Revision Kit from one of the ACCA approved publishers – they contain lots of past exam (and other exam-standard) questions to practice, and practice is vital to passing the exam.
In future please ask this kind of question in the Ask the Tutor Forum, and not as a comment on a lecture.
Sir in the lecture u said we should take the discount but in the notes its given do not take the discount …really confused :/
The notes do not say that at all!!
The answer to example 5 says “do take the discount”, just as I say in the lecture!!
I am abit confuse with the headings right here:
Interest cost of paying early:
13% × 6,849 = $890 p.a.
Benefit of discount:
1.5% × $100,000 = $1,500 p.a.
To my understanding the 13% would be what you pay if you do not take the discount and if you take the discount there would not be an overdraft.
Or is it that there will be an overdraft fee of 13% if you take the discount or not just that taking the discount your bal would be less so you pay less on the overdraft????
for example 4 why did you use 360 days and in example 5 you use 365?
Listen again to the lecture!!! I actually say that the examiner sometimes says to assume 360 days in a year, and I say that I am going to assume that.
In the exam he tells you how many days to assume in the year.
What does the rate we calculated of 24.64% mean? I can’t wrap my head around why we would take the discount.
If we delay payment we save overdraft interest of 13%.
However delaying payment means we lose the discount and pay more, which effectively is costing 24.64%.
Therefore it is not worthwhile delaying payment.
Alternatively (if it makes it clear for you), paying early means we pay less and save 24.64%. Paying early means a bigger overdraft and that costs us 13%.
It is better to pay early because there will be a net saving.
How is the delay related to overdraft interest rate?
Sir, I have the same question. How is the delay related to overdraft interest rate?
When we pay the overdraft will increase.
Interest has to be paid on the overdraft.
Paying earlier means that the overdraft increases sooner and therefore there is more interest to pay.