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Hi,
I would be grateful if someone can a couple of the multiple choice questions for the above paper.Q5 – they have used 30/360 * sales
Why have they used the sales amount (200) and not the cost the sales (120).
I thought that finished goods was worked out by using cost of salesQ15 – can you please explain how this is calculated, the answer shows
(5*$8 + 1.25*6) / 6.25 – $6 / 4shares
I understand the first part, and divided by 6.25. However I am confused where the minus $6 comes from.I’m probably being really stupid and starting to stress a bit now. Help would be much appreciated
Thanks
HayleyQ5 But the answer multiplies by 0.6. because the cost is 60% of the sales.
If you multiply 120 x 30/360 you get exactly the same answer!!Q15 The TERP is $6.25. However the question asks for the value of the rights, which is the difference between the TERP and the amount payable to take up the rights (which is $6).
(Have you watched my free lectures on this? The lectures are a complete free course and cover everything needed to be able to pass the exam well.)You can find lectures working through the whole of this exam linked from this page:
https://opentuition.com/acca/fm/acca-fm-revision-lectures/
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