@@adapttuition huh!! it was, because of the long title i never notice but isn't those multiple choice questions, and these ratios videos are more in dept.
@@adapttuition okay but i'll watch them, probably watch all your videos POA base. but are you saying it's best to watch the July 3rd 2020 ratio video first instead of the 2021 current ratio playlist videos?
Hi, thanks for the compliment! I really appreciate it😀 I have some past paper solution videos on cooperatives up. The videos between now and exams will focus on ratios and correcting net profit for errors. I am also trying to do up on for a statement of changes in equity so that's taking some time.
Sir, a question. In our school business studies paper, we attempted a question regarding the possible effects of a fall in profitability and liquidity. I wrote that low profitability could result in lower dividend payments to shareholders and reduced retained profits that the business can tap into as a source of finance. Is this correct? Also, what are the possible consequences of a fall in liquidity. Thanks for the video btw.
Hi Ethan, Your analysis is logical. Low profitability can have those effects. Low liquidity means that the business’s current assets are relatively close in dollar value to its current liabilities. Therefore it could be the case that the entity might not be able to pay off its current liabilities, in which case it could face interest charges for late payment and possibly even more stringent credit terms going forward, or, the supplier refuses to sell to them on credit in the future. The other possible implication is that the business may use up its liquidity paying off its current liabilities and not have any for its non-current liability commitments such as principal or interest repayments which in turn could see them facing legal action according to the terms of the contracts attached to those non-current liabilities. They may have to surrender assets that were pledged as collateral for the loan and that could significantly affect the entity’s ability to operate.
@@adapttuition ahh I see. Well, I lost six marks there 😢. Btw another thing... I was unable to find a video regarding the journal entries for the transfer of provisions to the income statemnt. Suppose a debt from Sam is written off as bad. In that case, bad debts is debited and Sam's account is credited. However, when transferring it to the income statemnt, bad debts is credited and income statement is debited. Similarly, an increase in the provision for doubtful debts is an expense whereas a reduction is an income. Does the same concept apply? I was attempting an mcq the other day and it was an increase in 50. To transfer this, we debit income statement and credit provision right? The correct answer was credit income statement and debit provision. I made a taccount too but still didn't get it. Could u please answer this question? Also forgive my rambling 😅
Sir in some Income Statements there are revenues added to the gross profit. When calculating the gross profit margin should the figure after revenues are added be used?
Hi @abigailclayton7618 No, the gross profit before any additional/other revenues is the figure to use. This is because the gross margin is supposed to tell us what gross profit from trading is as a percentage of net sales. If we include other revenue that we didn't get from trading, then it will give us a higher profit figure that did not come from trading and thus give us an incorrect figure relative to what it is we are actually looking for. Hope that helps :)
Hi. Thank you so much for your videos. I'm kindly asking for a video on the Cash Flow Statement or a link if you already have one. My exams are in 2 weeks & I didn't get a good intro to how it works or how to go about it.
@@adapttuition no sir, myself and some other students don’t understand anything. I think it’s the way the teach explains (with attitude). However I understand what’s was explained in this video except operating expenses, we haven’t done that but thank you and please continue doing what your doing 🙌. God Bless you👏
Sir the question am attempting doesn't have opening capital and closing capital but rather it has retained earning, paid up capital & total owner's equity, so how do I compute "return on capital employed"
Hi, neither is more correct than the other. It depends on who is calculating the ratio and for what purpose. Some people think that PBIT is better as interest and tax are not operating expenses, which is true, and that profitability should only be measured based on operating expenses. Some ppl believe that profitability should be measured after interest and tax which gives a more “prudent” measure.
Hi, we only have about 10 days before the exam and I already have plans for 2 or maybe 3 videos and unfortunately that one isn't on the list. If you search the channel for "journal" or "journal entries" or check out the 12 MCQ videos I did last year you might find something that can help.
Hi Ashraf, yes I do 😊 Currently my class is working past papers to revise for mock exams. We only have budgets and cash projections to do as topics to finish the syllabus and we may possibly revise stock valuation if there is time. But apart from that it’s just past paper revision until the exam in May. Email me for more details - chris@adapttuition.com
Sir my teacher gave us for ROCE, Net Profit / capital employed x 100/1 (Capital employed = closing capital) I was wondering if to use this or average but i just heard what you said about what is given. Is it okay if i exclusively use the closing capital one? And not the average even if they give me opening and closing
Hi, that formula is perfectly fine. However, to me that capital at start is the capital that was employed in the generation of the profit for the year. That same profit is then added to the capital at start to find capital at end. Usually average capital is used. But you should be fine, once you use a consistent formula for the calculations.
Hi 😊 the concept and formula haven’t changed so I don’t see the need to do an updated video What do you think was missing/lacking that you would have wanted to see in an updated video?
Hi, I'd love to help but I already have a line-up of videos I'm in the process of making. When you say Accounts Module 3 are you talking about unit 1 or unit 2 though?
Sir I will salute u during my graduation, u have impacted alot I wasn't taught in class,, I just say thanks, thanks, may the Lord pay u 😭
Happy to help 😊
Blessing to you too!
Sir you saving us all rn😭😭
Trying to do my part to help as many as I can :)
Keep up the good work!
You can do it!
i search your youtube page about a million times looking for ratios 😂😂😂😂 now here it is thank you very much 😊 😊 😊
ua-cam.com/video/vQn1jw8H5O8/v-deo.html
This video has been up since July 3rd 2020 :)
@@adapttuition huh!! it was, because of the long title i never notice but isn't those multiple choice questions, and these ratios videos are more in dept.
If you look at the video you’ll see I give explanations even though it’s multiple choice. Look at the video 👍🏽😊
@@adapttuition okay but i'll watch them, probably watch all your videos POA base. but are you saying it's best to watch the July 3rd 2020 ratio video first instead of the 2021 current ratio playlist videos?
You can watch either one first. Maybe watch the more recent ones then the mcq.
These videos are a blessing. God bless u Sir.
Thanks 😊
Many blessings to you too
You literally never disappoint Sir Thank You
Also will you be doing any videos on cooperatives between now and the exam ?
Hi, thanks for the compliment! I really appreciate it😀
I have some past paper solution videos on cooperatives up.
The videos between now and exams will focus on ratios and correcting net profit for errors. I am also trying to do up on for a statement of changes in equity so that's taking some time.
Here after the exam was good sir thanks to u I think I did good ty a lot blessings
All the best :)
This is one of the main things I get problems with😭 thanks for the help
Happy to help!
These videos really saving my tail! Thank youuu!! And pls wish me good luck in exams tmr😭
Good luck!!
@@adapttuition thank you!
Excellent video Sir. Thank you kindly.
Glad to be of assistance!
Ah son ah the Soil boy. I'm planning for ACCA and this came handy. Lucky to find this channel haha rep 🇹🇹🇹🇹🇹🇹🇹🇹
Happy to hear you’re finding the content helpful!
Best of luck with ACCA!
sir you really saving us right now for exam tomorrow
I’m trying to play Superman as usual 😄
Maybe I should spell it “SuPoAman” instead?
haha yes good one!😂😂@@adapttuition
😄
Finally ready for the test🥺 thanks sir
Best of luck!
Sir, a question. In our school business studies paper, we attempted a question regarding the possible effects of a fall in profitability and liquidity. I wrote that low profitability could result in lower dividend payments to shareholders and reduced retained profits that the business can tap into as a source of finance. Is this correct? Also, what are the possible consequences of a fall in liquidity. Thanks for the video btw.
Hi Ethan,
Your analysis is logical. Low profitability can have those effects.
Low liquidity means that the business’s current assets are relatively close in dollar value to its current liabilities.
Therefore it could be the case that the entity might not be able to pay off its current liabilities, in which case it could face interest charges for late payment and possibly even more stringent credit terms going forward, or, the supplier refuses to sell to them on credit in the future.
The other possible implication is that the business may use up its liquidity paying off its current liabilities and not have any for its non-current liability commitments such as principal or interest repayments which in turn could see them facing legal action according to the terms of the contracts attached to those non-current liabilities.
They may have to surrender assets that were pledged as collateral for the loan and that could significantly affect the entity’s ability to operate.
@@adapttuition ahh I see. Well, I lost six marks there 😢. Btw another thing... I was unable to find a video regarding the journal entries for the transfer of provisions to the income statemnt. Suppose a debt from Sam is written off as bad. In that case, bad debts is debited and Sam's account is credited. However, when transferring it to the income statemnt, bad debts is credited and income statement is debited. Similarly, an increase in the provision for doubtful debts is an expense whereas a reduction is an income. Does the same concept apply? I was attempting an mcq the other day and it was an increase in 50. To transfer this, we debit income statement and credit provision right? The correct answer was credit income statement and debit provision. I made a taccount too but still didn't get it. Could u please answer this question? Also forgive my rambling 😅
Sir in some Income Statements there are revenues added to the gross profit. When calculating the gross profit margin should the figure after revenues are added be used?
Hi @abigailclayton7618
No, the gross profit before any additional/other revenues is the figure to use.
This is because the gross margin is supposed to tell us what gross profit from trading is as a percentage of net sales.
If we include other revenue that we didn't get from trading, then it will give us a higher profit figure that did not come from trading and thus give us an incorrect figure relative to what it is we are actually looking for.
Hope that helps :)
your pretty popular in my classes
Happy to hear people are learning from and enjoying the videos 😊
Tell them I said hi and thanks for watching 😁
Hi. Thank you so much for your videos. I'm kindly asking for a video on the Cash Flow Statement or a link if you already have one. My exams are in 2 weeks & I didn't get a good intro to how it works or how to go about it.
Hi Natasha,
Email me chris@adapttuition.con
Yes sir, we’re doing rate of inventory turnover in my school
Hi! Thanks for letting me know. How’s it going with that in school? Is everything clear and understandable?
@@adapttuition no sir, myself and some other students don’t understand anything. I think it’s the way the teach explains (with attitude). However I understand what’s was explained in this video except operating expenses, we haven’t done that but thank you and please continue doing what your doing 🙌. God Bless you👏
You’re very welcome 😊
Sir the question am attempting doesn't have opening capital and closing capital but rather it has retained earning, paid up capital & total owner's equity, so how do I compute "return on capital employed"
Hi Anthony, total owners' equity is the parallel figure.
Or maybe try adding paid up capital and retained earnings and use that figure.
in the formula somebody uses net profit and somebody uses PBIT. which one is correct
Hi, neither is more correct than the other. It depends on who is calculating the ratio and for what purpose.
Some people think that PBIT is better as interest and tax are not operating expenses, which is true, and that profitability should only be measured based on operating expenses.
Some ppl believe that profitability should be measured after interest and tax which gives a more “prudent” measure.
Sir for ROCE/ROI isn't it net profit or profit for the year divided by total equity × 100?
That’s also an acceptable formula. The one I have with average capital is also fine.
But you wouldn't get a different answer?
But you won't get a different answer?
the night before poa is tough ;(
Make sure to get enough sleep otherwise if you fall asleep in the exam all the stuff you studied wouldn’t matter
@@adapttuition ofc, i'm planning to get my full 8 hours... it's only a couple mins before 8 rn lol
Sir by chance do have a playlist on the topics csec released
Hi, I have many playlists. Please feel free to check them out.
Can you do a video on the books of original entries please?
Hi, we only have about 10 days before the exam and I already have plans for 2 or maybe 3 videos and unfortunately that one isn't on the list. If you search the channel for "journal" or "journal entries" or check out the 12 MCQ videos I did last year you might find something that can help.
@@adapttuition is accounting for entrepreneurs on the list? 🤣😥
Yes, it is
@@adapttuition great im saved
Sir do u provide private lessons
Hi Ashraf, yes I do 😊
Currently my class is working past papers to revise for mock exams.
We only have budgets and cash projections to do as topics to finish the syllabus and we may possibly revise stock valuation if there is time.
But apart from that it’s just past paper revision until the exam in May.
Email me for more details - chris@adapttuition.com
Sir my teacher gave us for ROCE, Net Profit / capital employed x 100/1
(Capital employed = closing capital)
I was wondering if to use this or average but i just heard what you said about what is given.
Is it okay if i exclusively use the closing capital one? And not the average even if they give me opening and closing
Hi, that formula is perfectly fine.
However, to me that capital at start is the capital that was employed in the generation of the profit for the year.
That same profit is then added to the capital at start to find capital at end.
Usually average capital is used.
But you should be fine, once you use a consistent formula for the calculations.
Thank u .can u do updated video
Hi 😊 the concept and formula haven’t changed so I don’t see the need to do an updated video
What do you think was missing/lacking that you would have wanted to see in an updated video?
Heyy by chance did you already did cxc poa jan paper 2 2008 Q5 ?
Hi, I probably have that solution but I only put up solutions from 2021 to 2015.
@@adapttuition Orr okay np
We literally just started this topic yesterday at school
Better late than never I suppose. Look out for video 2 on liquidity ratios dropping tomorrow.
Exam in 9 hours and I am just learning this.
Sigh its sad
No worries!
Just do your best 😊
God bless u
And, same to you :)
Thanks 😊
Can you do CAPE Accounts and MOB Module 3 PLEASEEEEE
Hi, I'd love to help but I already have a line-up of videos I'm in the process of making. When you say Accounts Module 3 are you talking about unit 1 or unit 2 though?
@@adapttuition unit 1 sir
Do you plan on doing CAPE videos in the future ?
Hopefully in the upcoming academic year (Sep 2021). May be doing Unit 2 though.
THnk u
You’re most welcome 😊 glad to know you’re finding the content helpful
please do an add maths crash course pleasssssssss
Will see what I can do. Any topic(s) in particular you'd like for me to focus on?
@@adapttuition differentiation and integration
Again bro 😭🔥
Happy to help, Tommy!
sir do you teach math also😂😀
Maths and Add Maths 😁
@@adapttuition you break down your videos so well thank you!🤝
@@myaa868 no cap he really does, such a great fella!!
Is The names of the companies for me 🤣🤣
Gotta keep it interesting somehow, right? 😄