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Respected sir,
I have a doubt regarding payables management. To calculate whether paying early is beneficial or not sometimes they use the discount formula and compare with overdraft rate and sometimes the calculate they new payables and then take the difference between new and old payables and then apply the overdraft rate and compare it with the discount received the amount.
when are we supposed to use the discount formula and when not?
Also, sir, your lectures are of great help but I can’t find lectures on market efficiency and asset-based valuation methods. I am having problem-solving business valuation questions.
You use the discount formula unless the amount of the purchases on credit changes or unless (which is unlikely) they pay some creditors after (say) two months and others after (say) one month.
Both of the topics you mention are obviously covered in the lectures. (The lectures are a complete course and are supposed to be watched in order – not at random).
Presumably you downloaded the free lecture notes before watching any of the lectures. Try looking in Chapter 2 and in Chapter 16, and the lectures that go with them!!!
Thank you so much, sir. I watch lectures when I get stuck on a particular topic and since i am following bpp I at times confuse the ordering of chapters.
The lectures are a complete free course – if you are watching the lectures then you do not need the Study Text.
What is essential (however you choose to study) is that you have a Revision Kit from one of the ACCA approved publishers. They contain lots of past exam questions and other exam standard questions, for practice. Practice is vital to passing the exam, and is as important as the studying.
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