This Board is DEAD- TIME TO REVIVE! POST YOUR QUESTIONS HERE AND I WILL ANSWER:)

[BoredSatan]

Post any questions regarding unit 4 accounting and I will try my best to answer them ASAP

Time to start revising for exam time!!

[paulsterio]

I'm surprised how dead Accounting is, given so many people do the subject!

[BoredSatan]

I'm surprised how dead Accounting is, given so many people do the subject!

I know right..

[synchronise3]

haha I'll start...

What is the purpose of calculating a ROI if the ROA has already been determined?

P.S. My acc teacher's mentioned you once or twice

[sam.utute]

The ROI gives you an indication of how well the business has performed from the owner's perspective. The owner could have invested his money elsewhere (in perhaps less risky areas e.g. property). The ROI is one of the main indicators of  profitability and is actually used in real life by investors seeking to maximise their returns.
ROA gives you an indication of how well the business assets have been used to generate profit. This is from the management perspective (e.g. are we making sure all our assets are contributing to profit maximisation).
Basically different perspectives.

Good idea BoredSaint!

[BoredSatan]

haha I'll start...

What is the purpose of calculating a ROI if the ROA has already been determined?

P.S. My acc teacher's mentioned you once or twice

Oh are you a Glenny kid as well?? I remember my accounting teacher saying how no one would get a 50 last year.. And 2 of us got it

[synchronise3]

The ROI gives you an indication of how well the business has performed from the owner's perspective. The owner could have invested his money elsewhere (in perhaps less risky areas e.g. property). The ROI is one of the main indicators of  profitability and is actually used in real life by investors seeking to maximise their returns.
ROA gives you an indication of how well the business assets have been used to generate profit. This is from the management perspective (e.g. are we making sure all our assets are contributing to profit maximisation).
Basically different perspectives.

Good idea BoredSaint!

Thanks sam!

Oh are you a Glenny kid as well?? I remember my accounting teacher saying how no one would get a 50 last year.. And 2 of us got it

haha yeah, although she is a beast teacher

[BoredSatan]

BUMPP

[qqla]

So boredsaint, how many practice exams to do if you're balancing another 4 year 12 subjects?

[thushan]

Bored is reigniting the board. I like that.

[elmoodo]

I'll bite.

Straight from the study design. Had it on my SAC but definitely got it wrong

"discuss the implications of changes in the level of debt ratio"

[sam.utute]

So boredsaint, how many practice exams to do if you're balancing another 4 year 12 subjects?

I'd aim for at least 15. That would be manageable given the time left until the exam. Make the most of the holidays and get a few extra done.

Ideally, I think everyone should aim for 20-25. Doing well on the practical side requires a lot of practice.

[BoredSatan]

So boredsaint, how many practice exams to do if you're balancing another 4 year 12 subjects?

I'd aim for at least 15. That would be manageable given the time left until the exam. Make the most of the holidays and get a few extra done.

Ideally, I think everyone should aim for 20-25. Doing well on the practical side requires a lot of practice.

I did Accounting in year 12 as well and I managed to do pretty much every single exam out there (around 20?). I reckon it is achievable

[BoredSatan]

I'll bite.

Straight from the study design. Had it on my SAC but definitely got it wrong

"discuss the implications of changes in the level of debt ratio"

I would say something on the lines of:

Debt ratio measures the percentage of assets funded by external sources of finance (liabilities). The higher the debt ratio, the more reliant a firm is on external sources to fund assets. This can have implications to the firm's risk taking as more reliance on external sources would mean less reliant on owner's investment, and thus a greater return for every dollar invested by the owner. Hence, a greater debt ratio equals more risk but also more reward for the owner. On the other hand, a low debt ratio would indicate a low reliance on external sources to fund assets and thus more reliance on owner's investment, however a smaller return per dollar invested would be expected. Thus, low debt ratio equals low risk and also low return. It is important for the business owner to find a good balance between the amount funded by their pocket, and the amount funded by external sources so that the amount of risk is minimalised however not affecting a return on their investment

[BoredSatan]

Bored is reigniting the board. I like that.

Good One however ive heard better

"BS is yet again speaking BS"