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February 21, 2021 at 1:52 pm
LOVE IT!! I love the fact that you have included a tricky question! You are an absolute gem! You know that the material is good when you feel bad that it’s free!
John Moffat says
February 21, 2021 at 2:26 pm
Thank you for your comment 🙂
January 3, 2021 at 3:07 pm
This helped me a lot in my ACCA carrier. Thank You…
October 28, 2020 at 4:15 pm
I score 75% I can do forward, thank you supporting.
October 3, 2020 at 1:44 pm
The 6% statistics and warranty question was a tricky one indeed !
October 3, 2020 at 4:04 pm
June 28, 2020 at 4:13 pm
September 2, 2020 at 2:42 pm
SUCH A HELPFUL PLATFORM ,SPREAD THE SITE?
March 28, 2020 at 7:50 pm
Very happy to find a source like this. Thank you!
March 29, 2020 at 9:03 am
You are welcome 🙂
May 20, 2019 at 4:17 pm
The one thing is everyone confused and even I was confused about it was the 60%. This 60% is the chances that the company will pay the 100,000 not the 60% of 100,000. So
100,000 +10,000 = 110,000
May 20, 2019 at 5:58 pm
‘Everyone’ is not confused. If you have watched the free lectures first, then there is nothing to be confused about (and the wording of the question is copied from real exam questions).
November 30, 2017 at 8:53 am
Open tuition is soon helpful,thanks am getng challenged now after this questions,thanks
November 30, 2017 at 1:23 pm
November 12, 2017 at 3:06 pm
in question 4 thought the $100,000 of the customer claim and the $10,000 of the lawyers fee to be contingent liability, why is it an expense?
November 12, 2017 at 3:41 pm
The $100,000 is probable (between 50 and 95%) and is therefore provided for as an expense.
The $10,000 is certain and therefore is again provided for as an expense.
Did you watch the free lectures on this before attempting the test? 🙂
August 9, 2018 at 6:02 pm
Please explain why it is expense and not a liability?
August 10, 2018 at 6:10 am
It is a liability – that is what ‘provide’ means!
Just like an accrual, it appears as an expense in the SOPL and a liability in the SOFP.
Have you watched the free lectures?
September 23, 2017 at 7:18 pm
I am confuse about provisions.
If there is present obligation e.g any court case as a result of past event and reliable estimate can be made. And lawyers tell that it is likely that opponent will win case and bussiness is likely to pay estimated amount?
What should we do?
September 24, 2017 at 9:25 am
I explain this in my free lectures! It is a contingent liability and if it is ‘probable’ then they will provide for the liability.
September 23, 2017 at 7:17 pm
I am confuse about provisions.
If there is present obligation e.g any court case as a result of past event and reliable estimate can be made. And lawyers tell that it is likely that opponent will win case and bussineaa is likely to pay estimated amount?
What should we do?
August 23, 2017 at 7:45 am
In question 2, item 1 the company gives warranties on its products. The company’s statistics shows that about 6% of sales give rise to a warranty claim.
I don’t understand why the answer will be virtually certain but not possible?
The company << it is stand for company Q or another company?
I am a bit confusing
August 29, 2017 at 4:32 pm
Essentially, the statistics suggest that around 6% of sales will give rise to a warranty claim, not that there is a 6% likelihood that there will be a warranty claim.
August 29, 2017 at 4:59 pm
What Roger has written is correct.
It is virtually certain that there will be warranty claims – in the past there always have been warranty claims (about 6% of the sales result in warranty claims). The only relevance of the 6% would be in calculating how much the likely claims would be this year (but that is not asked for) 🙂
September 14, 2017 at 6:28 pm
If it’s virtually certain then shouldn’t I just include it in liabilities, rather than disclosing a note?
September 14, 2017 at 6:30 pm
Disregard that. That was the answer. I clicked the wrong button.
September 15, 2017 at 6:11 am
No problem 🙂
October 24, 2016 at 8:19 pm
? hope that in finally F3 exam will do all the questions as I do here.Thanks being helpful and by providing that site
October 25, 2016 at 7:34 am
Do make sure you do lots of practice – you should buy a Revision Kit from one of the ACCA approved publishers because they have lots of exam-standard questions to practice on.
August 14, 2016 at 5:00 am
In question 3, provision was made as the lawer advice,
In Q 4, i am confuse at provision,
Please explain me Q4, Thx
August 14, 2016 at 7:20 am
The probability of have to pay is 60% so the need to provide for 100,000.
In addition they will have to pay the lawyers fees of 10,000.
So a total of 110,000
June 5, 2016 at 6:50 am
In question 3 , provision of 3000 is created what about the other 2000 ? should that be disclosed in a note ?
June 5, 2016 at 8:21 am
Yes it would.
January 31, 2016 at 7:15 pm
Making this much simpler with these lectures and questions. I am beginning to feel very excited about this study open. OPEN TUITION!!!!
February 1, 2016 at 6:35 am
Thanks for the comment 🙂
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