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The Statement of Financial Position and Income Statement (part b) – ACCA (FA) lectures

VIVA

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  9. Hello sir, fantastic lecture !

    I have to say though, I have somethings for you to clear regarding Prepayments that is slightly confusing me, although you have said you would cover more on it later on, but I have a simple issue.

    First of all, did you mean to say $12,000 insurance for the entire year instead of $1200 ? Because you mentioned $3000 for the first 3 months.

    Secondly, if $3000 has been used up, shouldn鈥檛 the balance $9000 be recorded as Prepayment – as that is the amount yet to be used up, and that would be like Service to be yet Receivable.

    Thanks

    • What I was meaning is that maybe we have already paid $3,000 for the first 3 months of next year. That would mean we had overpaid and therefore have a prepayment.

      However, be patient – I explain accruals and prepayments in detail in Chapter 4.

  10. I got the very importance concept today,
    the definition of drawing and different between wages.

    The example of the non-current and current liabilities also helpful ,
    before this i really can’t tell where should i categorize the installment of a non-current loan,
    now i got a basic concept .

    2 more steps closer .

  15. I have a question in this lecture. You mentioned that anything the owner draws out from the business is “withdrawl” Even her mother gets something it will be counted as “drawing”. Understood. Now what if the owner says that he is giving his days and nights to the business and wants to withdraw a salary on monthly basis in lieu of his services provided to business. So will it still be counted as withdrawl or we can adjust it in expense as a fixed salary. Otherwise, he would have to hire someone to do the same work and will have to pay a salary.

  20. Dear All, I am just starting the ACCA course and noticed that there was a lot of terminology in the first chapter. I had wanted to ask if other students thought there was a lot of terminology all the way through or if once we got a basics, we come across the same terms through out most of the course? (Basically, I am going to learn a ton of new words or will the basics take me all through?)

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