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Remote session ACCA CBE 1-5 March 2021

Please read advice/recommendations from ACCA

Overcapitalisation and Overtrading – ACCA Financial Management (FM)


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Comments

  1. Samuel says

    January 18, 2021 at 5:38 pm

    Thank you so much Sir. Your explanantion has made it more clearer for me to understand overcapitalisation and overtrading. It’s helped me to appreciate and be able easily identify the complications that they can cause as well.
    Thank you so much.

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  2. shobinya says

    March 12, 2020 at 9:39 am

    Sir, I have a 2017 june edition of BPP Financial Management books. Is it fine to refer it for my study purpose for June 2020???

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  3. farahhh says

    January 21, 2020 at 8:03 pm

    Thank you for explaining so well, Sir. 馃檪

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  4. asher2019 says

    October 31, 2019 at 12:27 pm

    Thanks John for this presentation on over/under capitalization. I really do appreciate the distinction more so with the illustration.

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  5. Samuel Koroma says

    July 2, 2019 at 11:44 am

    Thanks for the illustrations used. It was very helpful to me. What level of working capital should be business then maintain in order to avoid overtrading or overcapitalization?

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    • Samuel Koroma says

      July 2, 2019 at 11:46 am

      *should the instead of be.

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      • John Moffat says

        July 2, 2019 at 4:45 pm

        There is no ‘best level’ of working capital. It all depends on the type of business.

        To avoid over-capitalisation they should make sure that they are managing each part of working capital efficiently (as explained in the following chapters).

        To avoid overtrading, they should plan properly when expanding to make sure they raise sufficient finance not just to finance the extra machines etc. but also to finance the extra working capital needed.

      • Samuel Koroma says

        July 8, 2019 at 12:15 pm

        Noted with thanks sir

  6. irham says

    November 5, 2018 at 2:05 pm

    Dear Sir,

    How did we arrive of $ 100 bank over draft?

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    • John Moffat says

      November 5, 2018 at 3:17 pm

      It is the missing figure to make the SOFP balance 馃檪

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