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These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

These are explanations and solutions for IB past papers, not the official version. For official papers, you can go to IB Follet or access them through your school.

 

01 Hours 45 Minutes

 

50 Marks

 

Calculator is allowed

IB BUSINESS MANAGEMENT HL, Paper 2, November, 2021, TZ0, Solved Past Paper

Master the 2021 IB November for Paper 2 Business Management HL with examiner tailored solutions and comments for TZ0

Question 1 [Explained]

Phoebe Bowen, a young entrepreneur, started her own clothing company, PB Ltd, on 1 January 2019. On the same day, PB Ltd purchased fixed assets for $20000. The estimated useful life of the assets is six years. At the end of 2020, Phoebe's newly appointed accountant said that Phoebe had omitted the depreciation of the firm's fixed assets from the accounts. Table 1 shows selected financial information from the final accounts of PB Ltd for the years ending 31 December 2019 and 31 December 2020.

2019

2020

Expenses

7

9

Cash

1

1.5

Share capital

6

6

Sales revenue

40

45

Short-term loans

-

0.65

Long-term loans

1

2

Fixed assets

20

20

Tax paid

1.5

1.7

Accumulated retained profit

6

12.9

Stock and debtors

3

2

Dividends paid

1

1.4

Cost of goods sold

24

25

Interest paid

0.5

1

Question 1 [a] [Explanation]

This question asks you to describe one disadvantage of using the reducing/declining balance method of depreciation.

Question 1 [b] [i] [Explanation]

This question asks you to calculate PB Ltd's annual depreciation of fixed assets for 2019 and 2020 using the reducing/declining balance method with a 5% depreciation rate. You must show all your working.