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Because fewer units are being ‘lost’ than were expected.
Have you watched my free lectures on this?
B is wrong because simply producing standards cannot ensure everyone performs ethically
C and D are wrong because individual countries cannot be forced to follow rules imposed by someone else.A is correct because although every country has the right to fix their own rules, the standards are to help (and encourage) them to adopt similar rules.
I cannot give you a schedule because I do not know what other commitments you might have.
You need to programme your days so as to have time to work through all of the chapters in our lecture notes (watching the lectures that go with them). It is important to finish them a week before your exam so that you can then spend time practicing exam standard questions.
Sorry, but we do not provide answers to test questions.
You must surely have been provided with an answer and if there is anything in the answer that you are not clear then ask and I will explain.
You have posted this in the Paper AFM forum. However it is too simple for AFM and is more Paper FM. Our Paper FM lectures cover in detail everything that is needed to be able to answer this question.
Increase in net assets = capital introduced + profit – drawings.
This is all explained Chapter 2 of our free lecture notes and in my free lectures working through Chapter 2.
As far as the calculation of the firms value is concerned it is the standard calculation of the PV of a growing perpetuity (which is the case here).
For the depreciation, although the depreciation itself is not a cash flow the question says that an amount equal to the depreciation is needed to maintain the current level of activity. This is very standard for the examiner these days and I do explain this in my free lectures.
I am not sure if I am looking at the same question as you. The only Paper AFM exam equation called Dricom is a very old question and was set in the December 1997 exam (not in 2010).
Thie question was a reorganisation and was not requiring a DCF appraisal – it was wanting to examine (and comment on) whether the reorganisation would satisfy the requirements of the various stakeholders.
The relevance of the tax is in order to calculate the profit after tax (i.e. the financial accounting profit after tax). We are not calculating the net cash flows because we are not required to calculate the present value and so adding back is not relevant.
We know that the bank statement is showing a balance of $200 Dr
However the cash account will be showing a different balance because of unpresented cheques, lodgments not yet credited, and any errors on the bank statement.
So what the question is asking for is what balance will be showing in the actual cash account, so you need to ‘work backwards’ from the bank statement to calculate this.
Hope that helps 🙂
I am afraid that it is wrong to simply multiply the std deviation by 5. It is the variance that must be multiplied by 5. (The reason becomes obvious by watching the Paper MA lectures on the standard deviation, but to be honest I would not waste your time but would just learn the rule)
I am afraid that it is wrong to simply multiply the std deviation by 5. It is the variance that must be multiplied by 5. (The reason becomes obvious by watching the Paper MA lectures on the standard deviation, but to be honest I would not waste your time but would just learn the rule)
1. I am sure for all of the books, but their website makes it clear before you order.
2. The discount code applies whether you order the hard copy or the e-book.
It is the last sentence of the paragraph underneath the details of the fixed costs. The fact that there is a tax credit automatically means that they can take advantage of it in the following year.
The credit note should have been credited to receivables but they have debited receivables by mistake (we would assume that the other entry (I.e. debit sales) had been done correctly.
So this is why the trial balance does not balance and so there is a suspense account.
To correct the error they would credit receivables with 800 (400 to cancel the wrong debit and another 400 to put the correct credit entry).
The double entry would then be to debit the suspense account with 800 which would clear the current balance on suspense of 800.Have you watched m y free lectures on suspense accounts?
My AFM lectures do revise the Paper FM topics where relevant.
However the revision is only quick. So what I would suggest is that you start working through the AFM lectures but as soon as you come to anything that worries you then go back to the relevant FM lectures where it is explained slower and in more detail.
A lot depends on how much time you have for studying. If you do have the time then the ideal would be to work through the whole of our FM lectures first and then watch the AFM lectures. If you do do that then it is just the FM lectures on Working Capital that you do not need to bother with because they are not relevant for AFM.
It is really hard for me to give advice to you.
All I can suggest is three things:
First, you say that you have been studying for 2 months, but have you watched our lectures? If not then you still have time to (and given that you have exemptions then it would really be worth watching our Paper FM lectures as well).
Secondly, in the exam itself do make sure that you right something for every part of every question. Even if you cannot complete a part of a question then you will still get some marks for writing anything at all sensible (and you only need 50 marks to pass the exam).
Finally, do have confidence in yourself when you go into the exam. There will be very many people less confident that you and will have done less studying than you. Never will everyone fail the exam and you will be one of those who passes it 🙂
Yes you should know them (you can find lectures on them in the Paper FA section of our website).
If there is a significant change in the gearing then we use the adjusted present value approach.
It is impossible for me to give you a definite answer, but if I were you I would book the exam, keep practicing up until the date, and go into the exam with confidence 🙂
The risk adjusted cost of capital for a project will normally be referring to that calculated using the assets beta of the project and is therefore accounting purely for the business risk (and not the gearing risk).
If both the business risk and the gearing risk change then we would use an adjusted present value approach (as explained in my free lectures).
If you go to the following page you will find links to all of the videos in the correct order 🙂
https://opentuition.com/acca/fa/acca-financial-accounting-fa-lectures/
This is a Paper FA question rather than Paper MA.
Our free lectures on Chapter 9 of our lecture notes work through all of the relevant entries.
(I think also that you are confused between the purchase ledger and the purchases account. The ledger contains all the payables accounts.)