Theory Questions

[Albeno69]

Thanks for pointing that out! =P (Now, I can blame TSFX... LOL.)

I heed your feedback - though I probably won't be re-typing it. I'll have a disclaimer:

PLEASE ENSURE THAT WHAT I HAVE WRITTEN COINCIDES WITH WHAT YOU'VE LEARNT. IF MY NOTES DON'T MATCH UP TO WHAT YOU'VE LEARNT... you're probably right - since I rushed a few points here and there (lame excuse, eh?)

Please ensure you read Albeno69's corrected points regarding the first doc.

are these your answers or tsfx

[eeps]

The notes were a collaboration between TyErd and other VN users (mojomojo etc) - they were the main source which the notes were based upon. Though the exact questions you pointed out were the ones from TSFX which I added in. (i.e. "Distinguish between Accrued Revenue and Debtors." and "Explain why the owner’s plan of action (increasing advertising) will not lead to an improvement of Gross Profit Rate.") =\ LOL.

[Albeno69]

The notes were a collaboration between TyErd and other VN users (mojomojo etc) - they were the main source which the notes were based upon. Though the exact questions you pointed out were the ones from TSFX which I added in. (i.e. "Distinguish between Accrued Revenue and Debtors." and "Explain why the owner’s plan of action (increasing advertising) will not lead to an improvement of Gross Profit Rate.") =\ LOL.

yea there are other that could have improvements but the fundamentals are all correct. you guys are all pro for doing all this work i now feel worried and under prepared that ppl have done this much work.lol

[eeps]

yea there are other that could have improvements but the fundamentals are all correct. you guys are all pro for doing all this work i now feel worried and under prepared that ppl have done this much work.lol

Don't worry - Study hard from now till Thursday and you will reap the benefits at the end of it all. I tend to always feel under prepared - just do as much as you can for Thursday and give the exam your best effort.

Good Luck to you, Albeno69!

[eeps]

Here is a couple of other notes before the exam.

Enjoy! =P

[huss48]

do u have the part 1 and 2 of ur theory questions??

[eeps]

do u have the part 1 and 2 of ur theory questions??

They're on second page of this exact thread. =P

[huss48]

thanks

[TyErd]

good work EPL.11.4ever. made such great contributions to this thread

[TyErd]

Yeah sure.

Here are some more:

1. With reference to two Accounting Principles explain why ratio comparisons with industry averages can be misleading.

2. Referring to one accounting principle, explain why it is necessary to prepare a schedule of receipts from debtors whilst preparing a budgeted cash flow statement.

3. With reference to one accounting principle, explain the valuation of NCAs at the time of purchase.

4. Using your definition of revenues explain why prepaid revenue becomes a revenue when the goods are delivered.

5. Explain using a Qualitative Characteristic, why the loss/profit on disposal of asset is recorded in the P/L Statement.

6. Identify and explain the Qualitative Characteristic that is achieved from making Balance Day Adjustments.

do you by any chance have the answers for these

[TyErd]

My answer was:

Accrued Revenue is revenue earning from the previous reporting period (i.e. from an investment/term deposit) which provides economic benefit to the business. With Accrued Revenue, the amount specified is the amount that must be paid to the business and there is no chance of bad debt occurring.

Whereas, Debtors is money owing from the sale of stock/assets of which must be paid - though the business may not always receive the full amount due to discounts being offered. The two are very similar in terms of providing economic benefit and what not.

question, why is there no chance of bad debt occurring?

[eeps]

question, why is there no chance of bad debt occurring?

In the case of a term deposit/investment, generally it's on a fix rate (i.e. 5% per annum) - therefore the money coming into the business is guaranteed (you're receiving the same amount each time). There is no possibility of bad debt occurring, unless somehow you rescind the term deposit/investment or something like that, in which case you no longer receive interest revenue.

[TyErd]

ohok i getcha thnx

[Stormer]

You're a machine EPL. I'm going over your theory questions now, hopefully i'll know most of the answers.

[TyErd]

is insurance on stock an other expense or COGS? how does it appear in cash flow- insurance of stock(operating outflow)