• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Chapter 3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Chapter 3

  • This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • January 10, 2020 at 1:12 pm #557639
    aiza
    Participant
    • Topics: 38
    • Replies: 54
    • ☆☆

    In chapter 3 page no 18 under the heading of The Financing Of Working Capital there is a sentence written
    ‘Short term finance is risky as it is repayable on demand’

    Can you please elaborate it? How come short term finance is risky?

    January 10, 2020 at 3:30 pm #557669
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    Short-term finance is finance such as overdraft borrowing. It is risk for two reasons – one is that the interest being charged can fluctuate, and the other is the bank can demand repayment whenever they want (and the company might not have the cash available to reply it).

    Long term borrowing is usually at fixed interest and is repayable on a fixed future date (so the company can plan ahead as to how they will repay).

    I seems that though you may be using the lecture notes without watching the free lectures. If that is the case then it is pointless. They are lecture notes – not a Study Text – and it is in the lectures that I work through the examples and explain and expand on the notes. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA approved publishers and study from there. (However you choose to study, it is essential that you buy a Revision Kit from one of the ACCA approved publishers (BPP and Kaplan), because they are full of past exam and other exam-standard questions for practice. Practice is vital to passing the exam.)

    January 13, 2020 at 2:58 pm #558421
    aiza
    Participant
    • Topics: 38
    • Replies: 54
    • ☆☆

    Thank you. I am watching your lectures along with your notes.

    There is another problem i encounter today in chapter 4, in your lecture number 1 on EOQ you said that ‘The cost of holding will increase with the order quantity, the cost of ordering over the year will fall’

    If we order in more quantity holding cost will eventually increase but how the ordering cost will fall?

    Is it because we ordered in more quantity once so we won’t need to order more frequently. is this the reason?

    January 16, 2020 at 7:41 am #558814
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    Yes, that is the reason. The more we order each time then the fewer orders will be needed over the year.

    January 16, 2020 at 8:56 am #558831
    aiza
    Participant
    • Topics: 38
    • Replies: 54
    • ☆☆

    Okay thank you so much. Means a lot!

    January 16, 2020 at 4:23 pm #558875
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Chapter 3’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • John Moffat on MA Chapter 4 Questions Cost Classification and Behaviour
  • maryrena77 on The nature and structure of organisations – ACCA Paper BT
  • vi234 on MA Chapter 4 Questions Cost Classification and Behaviour
  • vi234 on MA Chapter 4 Questions Cost Classification and Behaviour

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in