[josephee]

@johnmoffat said:
Please do not give links to pirate websites – it is illegal and the ACCA gets angry because the exams are copyright of the ACCA. For that reason I have deleted the link.

As I state in my free lectures, there are arguments both ways as regards the discount and the examiner always accepts either answer (and the difference is only ever small).

I appologize for posting links and wont happen again.

So which of the two options is practically feasible?

Should the computation for trade payables include the amount of credit purchases after discount or take credit purchases before discount

[josephee]

Thats exactly where i am confused because in your lectures you said there is no borrowing, so how does it work in futures

example

You enter into a futures contract to sell 100 shares of IBM at $50 a share on April 1 for a total price of $5,000. But then the value of IBM stock drops to $48 a share on March 1. The strategy with going short is to buy the contract back before having to deliver the stock. If you buy the contract back on March 1, then you pay $4,800 for a contract that’s worth $5,000. By predicting that the stock price would go down, you’ve made $200.

i am confused on where the 200 profit actually comes from because there is no borowing on futures and if a person buys it back he stays with it, how does he profit, Please i need your help

[josephee]

please can you help me

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