Dear sir, I'm doing this question for the second time and still making mistakes. Such a terrible question.
My question is that shouldn't they deduct irrecoverable debts from receivables before calculating the receivables days for the cash operating cycle?
thankyou
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PNP PLC JUNE 2007
Sir i also have a query regarding the notes. They say that unless a fully efficient market is there, timing of announcements will still be important.
My understanding is this:
Full efficiency can be there in strong form, semi strong form and weak form markets. Market will be fully efficient if it reflects all available information. (Regardless of whether it is weak, semi-strong or strong).
Please correct me if I'm wrong.
Thankyou
7y ago#2First question:
There are arguments both ways. The examiner is inconsistent in his answers, but has made it clear that he always accepts either.
I state this in my free lectures on the management of receivables.
7y ago#3Second question:
You are wrong :-)
Weak, semi-strong, and strong are levels of efficiency. Only strong-form efficient is fully efficient.
What is in the notes and the lectures (you should not use the notes without also watching the lectures) is correct.
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