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Dear Open Tuition,
Thank you for publishing MCQ answers!!! Now I can access my chances of passing before Feb !!!
Thank you for constant support during our ACCA journey!
Bless you all for hard work you are doing!!!
how on earth di you get the 111,98 for the market value?
what did you use as the discount rate? and what was the interest figure>?used 8 as interest and discount rate and the conversion value of 131..11 . gave me a mv of 118 something
seems i got more than 10 correct even 13 maybe because I forgot what I answered on all of them 🙂
re q5 MM states finance decision and dividend do not count?
For MC Q5, share repurchase can increase EPS and gearing, they are the benefits of share repurchase scheme and also mentioned in the textbook, so the answer should be B, not C. And M&M argue that only investment decision is relevant.
@basta said:
re q5 MM states finance decision and dividend do not count?I thought that too. I can’t remember which of the other answers I guessed, but I definitely ruled out C.
For MC Q15, point 1 An increase in the cost of equity leads to a fall in share price. I think it should also be correct if based on dividend valuation model. Maybe it is arguable, waiting for the ACCA official answers
For MC Q18, I also don’t agree with the Open Tuition answer of D, because Expectation theory claims that the current forward rate is an unbiased predictor of the spot rate at that point in the future. I think the answer D should be relevant to International Fisher Effect.
The answer B is relevant to liquidity preference theory, so I think the correct answer should be B. Again, waiting for the official answer
Thanks Opentuition for posting the answers. Looks like I got 10 or 11/20, depending if I remember my answers. Not great but I’ll take it and hope rest of paper went ok.
10 Which of the following statements concerning working capital management are correct?
1 Working capital should increase as sales increase
2 An increase in the cash operating cycle will decrease profitability
3 Overtrading is also known as under-capitalisation
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3OpenTuition gave a D
But I think B is correct.
2 An increase in the cash operating cycle will decrease profitability
Increase in COC means decrease in liquidity, tranditional trade-off for profitablity. Hence it’s a false statement.12 Which of the following statements concerning profit are correct?
1 Accounting profit is not the same as economic profit
2 Profit takes account of risk
3 Accounting profit can be manipulated by managers
A 1 and 3 only
B 1 and 2 only
C 2 and 3 only
D 1, 2 and 3OpenTuition suggested A, but I think it’s D.
2 Profit takes account of risk.
When recognizing sales and costs, risk is a factor to consider.
Also, bad-debt allowance is an application of risk accounting I think.
Am I right?Dear Staff – OT
It is with thanks that I wrote. You have help me to plan and prepare for the next term. Thank for the resources and help.
Regards,
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The multiple choice was crazy and the time allocated for the paper just didn’t seem enough
@hklui2007 said:
For MC Q18, I also don’t agree with the Open Tuition answer of D, because Expectation theory claims that the current forward rate is an unbiased predictor of the spot rate at that point in the future. I think the answer D should be relevant to International Fisher Effect.The answer B is relevant to liquidity preference theory, so I think the correct answer should be B. Again, waiting for the official answer
Please be appreciate the suggestions of OT – suggested answers. They are not saying that is ACCA answers; but like wise we suggested some answer in the exam and ALL awaits the results. This is the opinion of another person, who put themselves in our place.
We MUST disagree and share your views as you do. Thank you for your suggestions; it open the way for critical thinking and continuous learning.
Regards,
My folks, do you know the people behind open tuition than ACCA itself. The answers may likely be the correct one.
Dear Open Tuition
Thank you very much for your wonderful lectures and support throughout our studies. Without you, I would never be able to pass as I study alone..
Thank you Sir!!
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