Economics, Accounting & Business: Post your doubts here!

[Sarah Paul]

Q11) PED = 0 means it's perfectly in-elastic. Imposing a tariff would increase the overall cost to the consumer but there would be no change in the quantity demanded. Therefore C is the answer.

Q19) Find out the Opportunity cost ratios.
M
1X = 0.5Y
1Y = 2X Comparative advantage in Y

N
1X = 0.25Y Comparative advantage in X
1Y = 4Y

Rate is 1Y for 3X and it lies between their opportunity cost ratios so trade would be favourable.
A is the answer

Q27) D Because negative BOP means depreciating exchange rate while inflation would decrease because people would import less as the prices of imports would further rise due to depreciation of exchange rate.

Q8) D Definition of cross elasticity of demand.

Q13) C and D are totally wrong. When price of compliment increases, the demand for that good falls so A cannot be right. B is the answer because price of substitute may have increased further therefore B is the answer.

Q30) C because when taxes increases, people are left with left money to consume.

Thank you

 

[David Hussey]

i did check this ...but this is for limited company .. wat bot for Sole trader ?

does it matter?

 

[Layla..]

Guys...for Olevel ratio's, do we round off or no?

 

[MNH da KING]

Accounting 9706/02/O/N05 Qstn 1a

 

[AlphaBeta]

does it matter?

for ppr 4 there was a question on partnership and it asked the performance .. and for that it does matter
do same year (may/june 2012 ppr 42 ) question 2)part d) for ROCE here they take only capital and do sm tng ... not Non-Current Assets + Net-Current Assets.... -_- in da marking schme they say 77.1% so it cant be that
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_42.pdf
markscheme >
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_ms_42.pdf
> this was for paper 4 .. hv to be prepared for everytng right

 

[David Hussey]

Guys...for Olevel ratio's, do we round off or no?

ur in thw wrong thread
go to igcse or gce olevel scetion

 

[David Hussey]

for ppr 4 there was a question on partnership and it asked the performance .. and for that it does matter
do same year (may/june 2012 ppr 42 ) question 2)part d) for ROCE here they take only capital and do sm tng ... not Non-Current Assets + Net-Current Assets.... -_- in da marking schme they say 77.1% so it cant be that
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_42.pdf
markscheme >
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_ms_42.pdf
> this was for paper 4 .. hv to be prepared for everytng right

to be on safe side, i guess its bttr to stick with syllabus formuala given
maybe the formula was different in 2012, u cld chk the 2012 syllabus

 

[AlphaBeta]

why dont we include Training the workers in this ? isnt that in IAS 16 ??

 

[David Hussey]

View attachment 40460
why dont we include Training the workers in this ? isnt that in IAS 16 ??

the following costs can be as a part of the cost of assets:
import duties
costs of site preparation
intial delivery and handling costs
installation and assembly costs
cost of testing the asset
professional fees: architects or legal fees


training isnt in here? so i guess thts y

 

[David Hussey]

is the answer b?

 

[AlphaBeta]

is the answer b?

yup but .. training has to be there right .. practically

 

[David Hussey]

yup but .. training has to be there right .. practically

welcome to CIE

 

[:: A^]

yup but .. training has to be there right .. practically

Training cost is like a development cost and is considered a revenu expenditure.
Any wages or such which have to be paid in installing/painting,etc are capital expenditure!

 

[:: A^]

How is the answer C? M/J/04

And how is this D? M/J/04 Again

 

[AlphaBeta]

How is the answer C? M/J/04

??

And how is this D? M/J/04 Again
48300 * 2 = 96600 because complete reversal
prov for dep hav to minus
therefore 96600-960 =95640 ...

 

[Sarah Paul]

Guys...for Olevel ratio's, do we round off or no?

Twhy specify it at the beginning
In the instruction place where all decimal have to be rounded up to 2 dp or anything
They actually specify

 

[:: A^]

M/J/05 - P3

Answer is B.
Can someone explain?
Also:

How is the answer D here?

 

[SalmanPakRocks]

M/J/05 - P3

Answer is B.
Can someone explain?
Also:

How is the answer D here?

Q15) The dead weight loss is the loss of resources to people due to any external forces. In this case, it is tariff. Originally, the quantity people demanded at price OPw was 10 units (example) but however, when tariff was imposed, the price of the good increased and therefore the quantity demanded fell to 5 units(example). The loss of 5 units measured graphically would be by area y.
In the diagram, initially, people were buying grey area worth of goods. However, after tariff was imposed, the value fell to blue area. Grey - blue is equal to red.

 

[SalmanPakRocks]

M/J/05 - P3

Also:

How is the answer D here?

Let's see the effects of every option.
A) If money supply is increased, according to monetary transmission mechanism there would be an outward shift in AD, means the AD demand would increase overall. No movement so this cannot be the answer
B) Decrease in money supply would result in inward shift in AD curve, means that overall demand of an economy would fall. Vise versa of above statement.
C) If interest rates are increased, the people would save their money instead of investing it or demanding money. The output would not rise because there would be very less investment. Also because the cost of borrowing would increase (lonable funds theory)
D) Decrease in interest rate would lead people to demand for money and investment would increase. When this happens, the overall output is increased and that's what we are looking for. There would be movement along the curve from point J to K.
Therefore Answer is D

 

[zainabkhann]

Guys can someone please help me out with explaining what are realised and unrealised profit and losses in a partnership change ?

Thankyou

Kind regards