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A machine has an investment cost of $60,000 at time 0. The present values (at time 0) of the expected
net cash inflows from the machine over its useful life are:
Discount rate Present value of cash inflows
10% $64,600
15% $58,200
20% $52,100
What is the internal rate of return (IRR) of the machine investment?
A Below 10%
B Between 10% and 15%
C Between 15 and 20 %sir, when we are given 3 discount rates, which two should be used for IRR
Budgeted and actual production data for the year that has just ended are as follows.
Product Budgeted production Actual production
Units Standard machine hours Units
W 15,000 3,000 12,000
X 20,000 8,000 25,000
Y 14,000 7,000 16,000
Z 6,000 9,000 5,000
Total machine hours worked in the period amounted to 29,000 hours.
sir, i this question we are given list of standard hours.. but why these hours used as budgeted and we have to calculate standard hours??sir, how smaller EOQ means average inventory will fall?? can u plz illustrate
and lower EOQ means higher total annual ordering cost .. how?
hmm there are few problems showing the graph and listing 4 options related with graph. so, I always fail to make right answer 🙁 simple fixed and variable graphs are not so problematic.
sir, dividend payable for ordinary shares and preference shares adjusted in SOCIE or not?
sir, redeemable preference dividend paid shown in SOCI or in sOFP? until now, I hab been adjusting this in SOCI but i got anwer correct.. how?? 🙁
1.sir, what is the double entry for redeemable preference dividend paid?
2.Which of the following statements about the financial statements of limited liability companies are
correct according to International Financial Reporting Standards?
1 In preparing a statement of cash flows, either the direct or the indirect method may be used.
Both lead to the same figure for net cash from operating activities.
2 Loan notes can be classified as current or non-current liabilities.
3 Financial statements must disclose a company’s total expense for depreciation, if material.
4 A company must disclose by note details of all adjusting events allowed for in the financial
statements.
A 1, 2 and 3 only
B 2 and 4 only
C 3 and 4 only
D All four itemssir, why option 4 not correct?
oh sorry sir, i wanted u to answer this ques,, hmm I did not understand your reply. can you plz explain
I am confused. it says overcast only in discount received not in payable.. isn’t it??
Which of the following errors would cause a trial balance imbalance?
(i) The discounts received column of the cash payments book was overcast
(ii) Cash paid for the purchase of office furniture was debited to the general expenses account
(iii) Returns inwards were included on the credit side of the trial balance
A (i) only
B (i) and (ii)
C (iii) only
D (ii) and (iii)why option 1 does not cause a trial balance imbalance
1.we add investment income in operating activities. so can u give me examples of investment income ?
sir, are interest expense and interest paid different??
1..at 30 sep 2002
PPE cost 860000
accumulated depn 397000during the year ended 30 sep 2003, plant with written down value of 37000 was sold for 49000. this plant had originally cost 80000. plant purchased during the year 180000. It is the company policy to charge full depn in the year of acqn and none in the year of sale, using a rate 10% on straight line basis.
what is the carrying value at 30 sep 2003?2.
S bought a machine of 40000 in jan 2003. the machine had expected useful life of 6 yrs and residual value 10000. the machine was depreciated on the straight-line basis. At the end of dec 2004, the machine was sold for 15000.
what is the total amount charged in statement of profit or loss over the life of machine???1..given: 2006 2005
inventory 145 167
TR 202 203
TP 27 16
prepayments 196 212
interest accrual 6 28operATING profit 469850
depn 37400
what is the cash generated from operations?2. we have deposited 5000 in bank and we receive interest 100 yearly. so, where are we adjusting 100 in cash flow??under investing activities or under operating activities?
john, what about revaluation reserve. is the value at acqn and after acqn remain same or do wee need to do workin?
$400 paid for plant maintenance has been correctly entered in the cash book and credited to the
plant asset account. sir, i did not understand the logic behind ”debit asset account800 and credit suspense800.”.. I got the double entry as ”dr asset 400 dr maintenance 400 and cr suspense 800”