THAT'S so helpful, I'm a student who can't memorise a knowledge without understanding, ur vids help me to understand them and now i am able apply these knowledge
The way you present a concept is just mindblowing How on earth does it sink in and seem to be easy at the same time Also,today is my last gcs exam(accounting ) and wow i must say i played a huge role in my journey
I will try in future, for now I hope this may help: *If converting from margin to mark-up:* Assuming 25% margin, let the sales be assumed as 100. So profit = 25 and cost = 75. therefore, mark-up = 25/75*100 = 33.33% *If converting from mark-up to margin:* Assuming 25% mark-up, let the cost be assumed as 100. So profit = 25 and sales = 125. therefore, margin = 25/125*100 = 20%
Capital employed =Non current A + working capital (CA - CL ). My question is current liabilities that have been paid or still owing is used in capital employed calculation?
Yes CL will have to be used to arrive at the working capital so as to then calculate the capital employed. But there is an alternative formula to arrive at CE = Equity (Capital) + non-current liabiltiies. In this alternative formula, you dont need to use CL. Both ways of calculating CE give the same answer, but what has to be used depends on the information given in the question.
sir what is the significance of net working assets to revenue ratio and non current asset ratio ? is higher or lower better , an explanation would be great sir
Not sure you doing this ratio under which syllabus, but it depends on formula. If the ratio is calculated as Sales / Net working assets, then higher the ratio, better it is. But if the ratio is calculated as Net working assets / Sales, then lower the ratio better it is. Basically higher the sales, better it is.
Why would paying the credit supplier in shorter time to obtain the cash discount increase the quick ratio?.*My own view* current liabilities decrease and current assets decrease
Because in the denominator current liabilties decreases by the entire amount due (lets say $100) and the in the numerator bank decreases only by amount paid (lets say $95 assuming 5% discount). since CL falls more than the QA, overall ratio increases.
*Watch this example on Accounting Ratios to get complete clarity on concepts:*
th-cam.com/video/dIKW5IJZS_g/w-d-xo.html
thank youu very much! today is my last IGCSE accounting exam and I really owe it to you for all the help and good grades I have received!
Glad the videos helped you they made a difference :)
THAT'S so helpful, I'm a student who can't memorise a knowledge without understanding, ur vids help me to understand them and now i am able apply these knowledge
Thanks!! Your lessons are really helpful!
Thanks man. Im waiting for each topic second by second to recall and solidify my concepts
Ur way of explaining is exceptionally formal great job sir 👍🏻
Thanks:)
Thank you so much man!
I was able to learn ratios under 40 minutes because of you
thankyou for telling and teaching
It's my pleasure!
The way you present a concept is just mindblowing
How on earth does it sink in and seem to be easy at the same time
Also,today is my last gcs exam(accounting ) and wow i must say i played a huge role in my journey
You are phenomenal!!! Keep up the good work.
Thank u sir!❤🎉
Thankyou so much sir for these vids. God bless you with lots of success.
absolute legend.
Is this for As level too??
Why would the return on capital employed (ROCE) decrease when extending the loan repayment
date?
because loan is a part of capital employed. so higher cap employed means lower ROCE (since it is in the denominator of the formula)
Sir cant you say revenue instead of sales since IGCSE examiners recommend that rather than sales
Yes it is advisable to use the new terminology.
very helpful sir thank you very much
Thank you. Very much appreciated.
Glad it helped :)
This video helped a lot thank u sir
You are welcome :)
Thank you sir, it really helps me ♥️
Glad to hear that!!
REALLY HELPFUL VID but can u please make a vid on converting from markup to margin and vice versa
I will try in future, for now I hope this may help:
*If converting from margin to mark-up:*
Assuming 25% margin, let the sales be assumed as 100. So profit = 25 and cost = 75. therefore, mark-up = 25/75*100 = 33.33%
*If converting from mark-up to margin:*
Assuming 25% mark-up, let the cost be assumed as 100. So profit = 25 and sales = 125. therefore, margin = 25/125*100 = 20%
@@EdexWorld thanks alot
what is the formula for net credit sales?
Using a control account would be sooo much easy to calculate it . Watch his videos on incomplete records and control accounts.
Total sales
less: sales returns
less: cash sales
Why would purchase of non-current asset
on credit decrease current ratio?
because current liabilities would increase as the purchase is on credit.
How is buying in bulk from suppliers to obtain trade discount going to increase net profit margin if trade discount is not recorded in books?
Because after trade discount the cost of purchasing falls and as a result gross profit rises. Net profit also rises and net profit margin too.
Why is Mark up not found in this video or is it in a different video?
Have explained mark-up concept in the video on Incomplete records - th-cam.com/video/oWi0ZhvxBmU/w-d-xo.html
Capital employed =Non current A + working capital (CA - CL ). My question is current liabilities that have been paid or still owing is used in capital employed calculation?
Yes CL will have to be used to arrive at the working capital so as to then calculate the capital employed. But there is an alternative formula to arrive at CE = Equity (Capital) + non-current liabiltiies. In this alternative formula, you dont need to use CL. Both ways of calculating CE give the same answer, but what has to be used depends on the information given in the question.
sir what is the significance of net working assets to revenue ratio and non current asset ratio ? is higher or lower better , an explanation would be great sir
Not sure you doing this ratio under which syllabus, but it depends on formula. If the ratio is calculated as Sales / Net working assets, then higher the ratio, better it is. But if the ratio is calculated as Net working assets / Sales, then lower the ratio better it is. Basically higher the sales, better it is.
@@EdexWorld alevels sir
Why would paying the credit supplier in shorter time to obtain the cash discount increase the quick ratio?.*My own view* current liabilities decrease and current assets decrease
Because in the denominator current liabilties decreases by the entire amount due (lets say $100) and the in the numerator bank decreases only by amount paid (lets say $95 assuming 5% discount). since CL falls more than the QA, overall ratio increases.
Too much to take in. One of the highly dense topics in syllabus
try to understand the purpose and application of the ratio and then link that to the ratio formula. focus on the reasoning, and you will find it easy.
video and audio is not in sync
Yes, due to extra editing of audio.