Accounting Question Thread

[JinXi]

Love it when Variances reports goes F or U

how bout F and U 

[kepal5]

Love it when Variances reports goes F or U

how bout F and U 

lol if u went to Neville Boxes lecture at VU in the city he stated the same thing so funny lol

[eeps]

Tricky QUESTION to test people's knowledge:

Is there a positive effect to having a slow DTO (Debtors Turnover)? =P

and no, I don't know the answer...

[Stormer]

If the business is comfortable with its debtors eventually paying back then slower DTO means that there will (probably) be a lower Discount Expense.

Ya, Ya? lol

[eeps]

That's what I was thinking, greater Net Profit. Though on the same token, you could say that having a slow DTO increases the chance of bad debt, reducing the profitability of the business. :| (Though, that's a negative effect!)

[Stormer]

Hence the 'if the business is comfortable with debtors paying back' clause. However, it's still A positive effect; you don't have to mount an argument as to whether it's positive overall.

[JinXi]

There is, You dont have to lose potential revenue from discount expense.

[Stormer]

Doesn't affect revenue, I think you mean Profit?

[JinXi]

Yeah I do lol whoops.. Should stop studying-.-

Edit: And I somehow didn't read Stormer's Answer at the top -.-

[aposta28]

The only positive i can think of

Is that if it increases, but it is still within the credit terms
Still positive

Other than that.... hmm

[lilaznkev1n]

Also remember to learn your narrations
there wasn't a narration on the mid year so there is a higher chance of one narration on the exam tomorrow

[Stormer]

The only positive i can think of

Is that if it increases, but it is still within the credit terms
Still positive

Other than that.... hmm

But how's that positive? Gotta mention something to do with less Discount Expenses. Then again, this is probably all hypothetical.

[eeps]

To add to that, for a Stock Write-Down, remember:

- amount of stock being written down.
- name of stock/product.
- reason why it is being written down (if given).
- MEMO #

i.e. 3 SUPA's washing machines are written down to NRV due to damage (Memo 5).

[eeps]

The only positive i can think of

Is that if it increases, but it is still within the credit terms
Still positive

Other than that.... hmm

But how's that positive? Gotta mention something to do with less Discount Expenses. Then again, this is probably all hypothetical.

I'd doubt a question such as this would be on exam, I just put it out there.

[aposta28]

To be honest Stormer

It really isn't positive haha, however. how else could you answer it
Hypothetically speaking, if they are still in the credit terms but increased
it still is positive, but I know what you mean.. Its nothing to jump up and down as an owner.
lol