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ACCN2 help

Hi. I need help on question 3b, I've done the cash budget but am confused by this question.

http://store.aqa.org.uk/qual/gce/pdf/AQA-ACCN2-W-QP-JUN09.PDF
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Reply 2
3 (b) Advise the directors whether or not they need to arrange additional finance to purchase
the computer system. Justify your advice.

1 mark for statement of advice
e.g.
The directors do/do not need to arrange additional finance.

Justification is required as the key work "advise" is used.
So link advice to cash budget and use figures (e.g. involve calculation or comparison e.g. exceeds overdraft)

Plus either (1) for something about what source of finance you think they should use

However, forecasts can be inaccurate therefore obtaining external finance (perhaps?) based on an inaccurate cash budget could be detrimental to the finances of the business.

It is best to PM me with any questions you may have.

Hope useful.

Prof.

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