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The reason why translation risk was not included because it mentions trade payables is nil at each year end so there will not be any translation risk when consolidate the financial reports. Hope the points make sense to you?!
Transaction and economic risk as the question said the company will be trading with the foreign company for the next few years. Am I right?
Statement A suggests liquidity over profitability as using permanent finance reduce profitability.
Statement B suggest profitability as shortening trade receivables, reduce cash operating cycle, ie increase profitability.The answer is no as the audit engagement letter should be reviewed regardless of the change. Agree?
Hi, little bit confused with your calculation but my method will be as followed
If TP = 60 then divided that by 6 gives TP/min, ie $10 per min then times it by 60 should give you the required TP/hour and the ans is 600?
Please check me if my logic is wrong.
Don’t you work out the TP per min then times it by 60? Why 10? 60 mins = 1 hour right?
I remembered the minimax regret answer was 375 from the loss table. Anyone gets the same?
I agreed with the learning rate question as all the options are suggest slower rate.
Please correct me if I’m wrong
Hi, question said company policy may change so to max profit as a whole the variable cost should only be the price charged to division S and 500 bought from the external supplier, correct?
Hi Gladys, we were given both gross profit margin and operating net profit margin so was not 100% sure but having googled it just now the ROI should be calculated using the operating net profit margin times the asset turnover. Agree?
