Few Questions

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
I was just wondering if anyone can clarify something for me. I know if you returned goods to a supplier you would enter this into the purchases returns daybook and you would receive a credit note from the supplier, but if you say for example got a credit note from the electricity company would you also enter this into the purchases returns daybooks or does it go somewhere else?

My other question is can someone explain NPV I thought I understood it but I'm not 100 confident on it. Is it to do inflation or the interest the company would have to pay on borrowing the money?

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Few Questions

    Net presant valeu is the excess of present value cash flows over the inital outlay.

    I suppose you could say its what the item is owrth at the end of it life span.

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