Author Archives: Juan Pablo Trento

Sources of finance

leasing: A legal document (contract) outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the … Continue reading

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Senior 5: Costs

Costs: any expenditure made in order to produce during a period of time Direct cost (DC): costs that could be associated, identified, allocated straight with each unit of a product Indirect cost (IC): costs that cannot be associated with any … Continue reading

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Senior 3 -Paper 2 style section 1 solved

Look at Delfina`s blog http://delfinamiyuranga.cumbresblogs.com/2015/04/29/exam-practise/ Disadvantages of sole trader -if derek wants to share his ideas with someone else he won`t be able to do it. -it has unlimited liabilities -sources of finance will be limited, few Advantages of private … Continue reading

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Senior 5 Financial Ratio analysis

Profitability ratios ROCE (return on capital employed) = net profit after tax/ capital employed (long term liabilities + equity) It measures how good was the investment assuming only one year as the paying back money for the capital employed in … Continue reading

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Senior 5 financial statements: Cash flow statement

In this statement the company will register a break down of the main cash outflows and inflows. Cash outflows All of the expenditures in raw materials or finished goods for the period could have been paid in cash (outflow) or … Continue reading

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Senior 5 Financial Statements: Income Statement

1) Total Revenue / Sales turnover / Net sales : is the value of the total amount of goods and services sold during a period of time (accounting year, quarter) 2) Costs of goods sold/ sales: is the direct cost … Continue reading

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Senior 5 Financial Statements: Balance sheet

Balance sheet (The account records all business assets and liabilities and the value of shareholders’ funds.) 1 Assets (everything that the business has a right to use and sell, owned by it) 1.1 Current assets (Assets that the business will use up or … Continue reading

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Unit 11 Exam style paper 1 page 155

1- T&T is a small business wich sells many different types of garden tools. Sales of its products are growing very quickly. Its Managing Director (MD) feels that market research isn´t the most important factor contributing to the success of … Continue reading

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Unit 10 Exam style paper 1 page 141

Question 1) a) The needs being satisfied by D&F Ltd are supply in bulk of fruits and coffee for retailers which then will sell that for mass consumers. b) Falling price of coffee. Reason 1: excess supply because of a … Continue reading

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Section 2 people in business Solved Paper 2 style (page 128)

Paper 2 style 1 hour and 45 minutes.5 questions20 min each plus 5 min of reading case study 1 a) Identify and explain 2 reasons why well motivated employees are important for the restaurant.[8] 2 marks for knowledge; 2 marks … Continue reading

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