Myanmar DA Part I Module II cheat sheet

Accounting equation: Assets = Liabilities + Equity. Every transaction changes at least two elements but keeps the equation balanced, so total debits always equal total credits.

Debit increases assets and expenses and decreases liabilities, equity and income; credit does the opposite for each of those five elements.

Accrual basis: revenue is recognised when the performance obligation is satisfied and expenses when incurred, regardless of the timing of cash receipts and payments.

Straight-line depreciation = (Cost − Residual value) ÷ Useful life; reducing-balance charge = Carrying amount × rate, so the charge falls each year.

IAS 2 inventory rule: measure at the lower of cost and net realisable value. FIFO and weighted average cost are permitted; LIFO is not permitted under IFRS.

Gross profit = Revenue − Cost of sales; net profit = Gross profit + Other income − Expenses; gross margin = Gross profit ÷ Revenue × 100%.

Trial balance detects unequal postings but not errors of principle, complete omission of a transaction, compensating errors, or a posting to the wrong account of the same class.

Current ratio = Current assets ÷ Current liabilities; quick (acid-test) ratio = (Current assets − Inventory) ÷ Current liabilities.

Corrected bank balance = Bank statement balance + Deposits in transit − Unpresented cheques ± Bank errors; the cash book is then updated for items the bank has already recorded.

Simple interest I = P × r × t; compound amount A = P(1 + r/n)^(nt), where r is the nominal annual rate as a decimal and n the number of compoundings per year.

NPV = Σ CFt ÷ (1 + r)^t − Initial outlay. Accept a project when NPV > 0; the IRR is the discount rate at which NPV = 0.

Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit); break-even revenue = Fixed costs ÷ Contribution margin ratio.

Grouped arithmetic mean = Σfx ÷ Σf; median position = (n + 1) ÷ 2; the mode is the value or class with the highest frequency.

Sample standard deviation s = √[Σ(x − x̄)² ÷ (n − 1)]; the population σ uses n as the divisor. Coefficient of variation = (s ÷ mean) × 100%, and a lower CV means more consistent data.

P(A ∪ B) = P(A) + P(B) − P(A ∩ B); P(A|B) = P(A ∩ B) ÷ P(B); for independent events P(A ∩ B) = P(A) × P(B).

Laspeyres price index = (Σp1q0 ÷ Σp0q0) × 100 using base-period quantities; the Paasche index uses current-period quantities q1.

Pearson correlation coefficient r lies between −1 and +1; r = 0 indicates no linear association, which does not by itself prove independence.

PED = %Δ quantity demanded ÷ %Δ price. If |PED| > 1 demand is elastic and a price cut raises total revenue; if |PED| < 1 a price rise raises total revenue.

Income elasticity: positive = normal good, negative = inferior good, greater than 1 = luxury. Cross elasticity positive = substitutes, negative = complements.

Equilibrium occurs where quantity demanded equals quantity supplied; a price above equilibrium creates a surplus and a price below creates a shortage.

GDP by expenditure = C + I + G + (X − M). Real GDP is valued at constant base-year prices; nominal GDP at current prices.

CPI = (Cost of the basket at current prices ÷ Cost of the basket at base-year prices) × 100; the inflation rate is the percentage change in the CPI.

Simple money multiplier = 1 ÷ reserve requirement ratio; an open-market purchase of securities raises bank reserves and expands deposits.

Comparative advantage: a country gains from specialising where its opportunity cost of production is lower, even if it has an absolute disadvantage in both goods.

Demand-pull inflation comes from excess aggregate demand; cost-push inflation comes from rising input costs shifting aggregate supply to the left.

Monetary policy operates through the policy rate, reserve requirements and open-market operations; fiscal policy operates through government spending and taxation.

Elements of a valid contract: offer, acceptance, consideration, intention to create legal relations, capacity of the parties, and a lawful object.

Myanmar contract law is codified in the Contract Act 1872; sale of goods is governed by the Sale of Goods Act 1930; companies by the Myanmar Companies Law 2017.

A shop display, price list, catalogue, advertisement or tender notice is generally an invitation to treat; the customer or bidder makes the offer.

Consideration must be real, lawful and not past, but it need not be adequate; inadequacy of value affects fairness, not validity.

Acceptance must be unqualified and communicated by the offeree to the offeror; a counter-offer destroys the original offer.

Remedies for breach: damages for foreseeable loss, specific performance, injunction, rescission, and quantum meruit for work partly performed.

Myanmar Arbitration Law 2016 is modelled on the UNCITRAL Model Law; a valid arbitration agreement removes the dispute from the ordinary courts.

Negotiable Instruments Act 1881 covers the cheque (drawn on a banker, payable on demand), the bill of exchange and the promissory note.

An agent binds the principal within express, implied or apparent authority; where the agency is undisclosed the third party may sue either the principal or the agent.

The seven Cs of effective messages: clear, concise, concrete, correct, coherent, complete and courteous.

Full block letter format: every line starts at the left margin, including date, inside address, salutation, body paragraphs, complimentary close and signature block.

Salutation and close must match: Dear Sir/Madam pairs with Yours faithfully; Dear Mr or Ms + surname pairs with Yours sincerely.

Memorandum header carries To, From, Date and Subject; a memo has no salutation and no complimentary close.

Report structure: title page, terms of reference, procedure or method, findings, conclusions, recommendations, appendices.

Minutes record decisions, resolutions and action points with owners and deadlines; they are not a verbatim transcript and are confirmed at the next meeting.

Use the active voice for directness and accountability; use the passive voice when the doer is unknown, obvious or deliberately de-emphasised.

Affect is normally a verb meaning to influence; effect is normally a noun meaning the result. Principal means main or head; principle means a rule or belief.

Complimentary means expressing praise or given free; complementary means completing or matching something else.