1. Wonder Ltd rents office space from a landlord at N$ 45 000 per month. It uses this space to run a business selling pharmaceutical products. At 31 October 2020, it pays the rent for November 2020. Required: From Wonder perspective, prove that this payment is an asset as at 30 October 2020. (7 marks) 2. Chapter 2 of the conceptual Framework clarifies what makes financial information useful, that is, information must be both relevant and must faithfully represent the substance of financial information.

/in /by

1. Wonder Ltd rents office space from a landlord at N$ 45 000 per month. It uses this space to run
a business selling pharmaceutical products. At 31 October 2020, it pays the rent for November
2020.
Required:
From Wonder perspective, prove that this payment is an asset as at 30 October 2020. (7 marks)
2. Chapter 2 of the conceptual Framework clarifies what makes financial information useful, that
is, information must be both relevant and must faithfully represent the substance of financial
information.

You might also like
WHAT IS THE DIFFERENCE BETWEEN WANT AND DEMAND? EXPLAIN IT WITH THE HELP OF EXAMPLE
find the equilibrium level income and rate of interest from the following information C=40+0.8Yd, 110-5r, T=50, G=50, Md=0.2y-5r, Ms=100
A consumer has a utility function given by ln _U_ = 5 ln _x_1 + 3 ln _x_2 if the budget constraint is given by 10_x_1 + 14_x_2 = 124, find i) the optimal quantities of the two goods that the consumer should purchase in order to maximise utility, subject to the budget constraint. ii) the value of the consumer’s marginal utility of money at the optimum iii) the marginal rate of substitution (MRS) of _x_1 for _x_2 and determine its direction at the optimum
a demand function for a good is q=56.6-0.25p-0.4sp+0.6n Where q is quantity demand per week, p is the price per unit m is the average weekly income, ps is the price of a competing good and n is the population in millions. Given values are p=65, m=350, ps=60 and n= 24 1. Calculate the price elasticity of demand 2. Find out what would happen to(a) if n rose to 26 3.explain why this is inferior good 4.
On what bases could you argue the collapse of HIH was an example of the principal-agent problem?
For every two boxes of strawberries that she consumes, Millicent insists on having one pitcher of cream. She does not, however, insist on consuming the same amount every week. Her utility functions is U = min{s1, 2c1}min{s2, 2c2}, where s1 and s2 are the number of boxes of strawberries she consumes this week and next week and c1 and c2 are the number of pitchers of cream she consumes this week and next. Strawberries cost $2 a box and cream costs $1 a pitcher. She has a present value of $100 to spend on these goods in the next two weeks. The weekly interest rate is 1%. How many boxes of strawberries will she consume this week?
Assume a closed economy and no government. Also assume consumption C=50-0.8Yd and investment I=80 a) derive the equation for saving b) find the equilibrium output c) what is the implied multiplier
Suppose there is a covered bowl with 3 red balls and 6 other balls, which could be black or yellow. The Decision Maker [DM] doesn’t know how many black or yellow balls there are, other than there are 6 in total. The DM will choose one ball from the bowl; each ball is equally likely to be chosen. The DM is offered a choice between Option A, which pays off LKR1000 if a red ball is drawn (0 otherwise) or Option B, which pays off LKR1000 if a black ball is drawn (0 otherwise). The DM is then offered a choice between Option C, which pays off LKR1000 if a red or yellow ball is drawn (0 otherwise), or option D, which pays off LKR1000 if a black or yellow ball is drawn (0 otherwise). Find the expected utility basics of the theory of expected utility.