LCCI International Qualifications Book Keeping & Accounts Level 2 Model Answers Series 3 2010 (2007) For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com www.lcci.org.uk Book Keeping & Accounts Level 2 Series 3 2010 How to use this booklet Model Answers have been developed by EDI to offer additional information and guidance to Centres‚ teachers and candidates as they prepare for LCCI International Qualifications. The contents of this
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to note that liability in this form did not yet include the idea that the debtor "owed" monetary compensation to the creditor; it was merely a means of avoiding punishment. If the debtor or his family didn ’t have the means to pay then the old rules still applied as outlined in the Twelve Tables specifically in Table 3. This section‚ despite how harsh it may appear to us‚ was originally developed as a means to protect debtors from the excessive abuses of creditors. | |
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either (1) accept the plan of reorganization or (2) receive or retain under the plan property of a value‚ as of the effective date‚ that is not less than the value such holder would receive or retain under the plan or reorganization if the applicable debtor were liquidated under Chapter 7 of the Bankruptcy Code on the effective date. This is referred to as the “best interests” test. To make these findings‚ a bankruptcy court must (1) estimate the cash liquidation proceeds that a Chapter 7 trustee would
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one of major part of working capital. At any time‚ our machines may need repair. Repair is revenue expense but without cash‚ we can not repair our machines and without machines‚ our production may delay. Like this‚ we need inventory or to invest in debtors and other short term securities. On the basis of Concept‚ we can divide our working capital into two parts: [pic] 1. Gross Working Capital In this concept of working capital‚ we study gross working capital. We do not deduct current liabilities
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Credit Acts 1974. Consumer Credit Acts 1974 consist of several types of Credit Transactions‚ including hire purchase‚ conditional sale and so on. In terms of agreements‚ one is “Credit Agreement that is an agreement where the creditor providers the debtors with credit. Exempt agreement‚ which contains mortgages and fixed sum agreements‚ is another agreement but not covered by the Consumer Credit Acts.”(Consumer and Commercial law textbook p146) Achieving requirements from Credit Regulations 2004 prevents
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and to permit the continued expansion of commercial practices through custom‚ usage‚ and agreement of the parties involved. 3. Who has to comply with the UCC‚ when‚ and why? Anyone engaged in some form of commercial transaction that involved a debtor and a secured party. 1. What is the Uniform Commercial Code? Uniform Commercial Code‚ The Uniform Commercial Code represents a general and comprehensive revision of the state’s prior laws applicable to commercial transactions. 2. What is the
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to creditors and vice versa | Notes 1) Current assets are those assets which can be converted into cash within a period of one year or normal operating cycle of the business whichever is longer Examples : Cash in hand‚ cash at bank ‚stock‚ debtors‚ bills receivable‚ prepaid expenses 2) Current liabilities are those liabilities payable within an year or operating cycle 3) Quick assets = current assets – (stock+prepaid expenses) 4) Quick ratio is also known as the acid test ratio
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delivered to him. (1095) Art. 1165. When what is to be delivered is a determinate thing‚ the creditor‚ in addition to the right granted him by Article 1170‚ may compel the debtor to make the delivery. If the thing is indeterminate or generic‚ he may ask that the obligation be complied with at the expense of the debtor. If the obligor delays‚ or has promised to deliver the same thing to two or more persons who do not have the same interest‚ he shall be responsible for any fortuitous event
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Accounting systems can provide enormous amounts of information‚ including full profit statements‚ balance sheets and details of outstanding debtors‚ creditors and stock-holding levels. Sometimes they produce so much information that owner-managers cannot cope and prefer to ignore them. In fact‚ most small firms can be controlled by monitoring‚ on a timely basis‚ just six pieces of information that tell the owner-manager different‚ but vital‚ information on the performance of the business. These are
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Answer: The implications if a major customers had gone into is level‚ it will affect the company cash flow because every payment received the company may have to use it to cover its operating expenses apart from getting profit. Accumulated debtors will show the collection department performance. Low cash flow will affect many areas in an organization. The company may have to make another loan to run it business. Other than that it may have problem to run the business if the cash flow is low
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