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The Statement of Financial Position and Income Statement (part d)
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tashasays
Good day Sir. Great lecture. I presume from the lecture that it is correct to say that the Cost of Sales is a subset (part of) of Revenue Expenditure. Is that correct? Secondly I hear a lot about CAPEX, OPEX & COST OF SALES, will it be correct to say that Revenue Expenditure = Cost of Sales + Operational Expenditure (OPEX)?
They are effectively negative capital. However we do have to show them separately on the SOFP. Also, they will be given separately in question testing you on the accounting equation.
Hello, great and very understandable lectures, thank you so much! Just one question: when we buy a current asset such as inventory, is it a capital o revenue expenditure?
I have not heard your lectures on any of the skilled level courses yet, but i can certainly say that you are excellent apt and very understandable in the areas of Financial and Management Accounting. Thank You
You explain each and every concept so clearly. Thank you so much sir. In India there are very less coaching institutions for Acca and your video lectures helped me a lot
Sir, I watched all videos in this chapter, then tried to do some Kaplan tests related to this chapter and I found some questions that your lectures does not include. Are that questions redundant or should I use any additional material to be confident I will not meet anything new at exam?
tasha says
Good day Sir. Great lecture. I presume from the lecture that it is correct to say that the Cost of Sales is a subset (part of) of Revenue Expenditure. Is that correct?
Secondly I hear a lot about CAPEX, OPEX & COST OF SALES, will it be correct to say that Revenue Expenditure = Cost of Sales + Operational Expenditure (OPEX)?
John Moffat says
CAPEC and OPEX are not terms that have any relevance for Paper FA. The cost of sales is revenue expenditure.
tasha says
Many thanks for your clarification Sir.
abdull582 says
passed foundation level in 3 months,thank you sooo much sir
John Moffat says
That is great news 馃檪
fayazovhasan says
God bless you, sir!
John Moffat says
Thank you 馃檪
takudzwabf says
Can’t drawings be considered to be negative capital introduced to further simplify the “2nd” accounting equation?
John Moffat says
They are effectively negative capital. However we do have to show them separately on the SOFP. Also, they will be given separately in question testing you on the accounting equation.
zojessy says
Great lecture Prof.
How about costs of acquiring a capital expenditure eg; vehicle, the whole expenses involved In acquiring it like shipment costs. How do we cost it?
John Moffat says
This is all explained in later lectures 馃檪
maagdaa says
Hello, great and very understandable lectures, thank you so much! Just one question: when we buy a current asset such as inventory, is it a capital o revenue expenditure?
John Moffat says
Inventory is revenue expenditure – we are not intending to keep it and it will be sold to earn revenue.
An101 says
Prof…I never imagined it to be this easy..thank you.
tkhue3296 says
Sorry sir,
i can’t find the FA MCQ test after click on the link in the note,
is it changed to other name ?
John Moffat says
Here is a link to the test:
https://opentuition.com/acca/fa/fa-chapter-2-questions/
tkhue3296 says
Appreciate ,
one more video completed,
move on .
Kin says
Thank you professor. Your lecture is really easy to understand.
John Moffat says
Thank you for your comment 馃檪
kandiero says
Thank you have understood the equations
kimbrianna@gmail.com says
I have not heard your lectures on any of the skilled level courses yet, but i can certainly say that you are excellent apt and very understandable in the areas of Financial and Management Accounting. Thank You
mohd1994 says
where is the FA MCQ test
rajsaranp says
Thank you sir for everything you’ve done for us. I find your lectures and notes very helpful all thanks to your way of explanation.
John Moffat says
Thank you for your comment 馃檪
artipha says
I have just signed up to open tuition and I am going it. Thank you Sir John, my exam is 28th Oct so working hard to get through the lectures.
kanishi says
You explain each and every concept so clearly. Thank you so much sir.
In India there are very less coaching institutions for Acca and your video lectures helped me a lot
John Moffat says
Thank you for your comment 馃檪
khristova says
Thank you very much, it is so easy with you 馃檪
John Moffat says
Thank you for your comment 馃檪
emilyvint says
Very clear and easy to understand Lecture.
John Moffat says
Thank you for your comment 馃檪
Onur says
Such a clear and joyful lecture. You are making this so very easy to understand, thank you so much for your help. 馃檪
John Moffat says
Thank you for your comment 馃檪
ollmir says
Thank you so so much, you are the best lecturer, i wish we could have you in our class !!!
John Moffat says
Thank you very much for your comment 馃檪
Asif110 says
I second that
vdmjv says
Sir, I watched all videos in this chapter, then tried to do some Kaplan tests related to this chapter and I found some questions that your lectures does not include.
Are that questions redundant or should I use any additional material to be confident I will not meet anything new at exam?
John Moffat says
You will have to say what the questions are!
(But post in the Ask the Tutor Forum – not as a comment on a lecture 馃檪 )