[Aldin]

Okay thank you sir

I am really unhappy about overthinking that question because I know what gearing is.

[Aldin]

Hi Mike,

Can you assist me with two MCQs?

Question 2:

Why is this answer not B? Can’t the development of a new process still be recognized even though it does not generate sales? Can’t it reduce your cost and therefore still be recognized?

Question 7:

I read this question and figured ACCA was trying to trick us so I did not pick D. The question reads ” Which of the following transactions would increase Jasmin’s gearing compared to what it would have been had the transaction not happen.”

I chose A because if the revaluation did not happen, that would increase Jasmin’s gearing because the company would have less equity. ( i.e no revaluation surplus).

I figured if the answer was D they could simply ask which of the transactions increased Jasmin’s gearing?

[Author]

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