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CIMAPRA17-BA3-1 Exam - Topic 1 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 105
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

Entity HJ is a small business. In the period. Entity Hj earned revenue of 24,300, had opening inventories of 1,500 and closing inventories of 8,000. Purchases came to 13,200.

What was Entity Hj's gross profit or loss for this period?

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Suggested Answer: B

by Olive at Jan 11, 2025, 12:59 PM

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Allene
3 months ago
I thought losses were more common for small businesses.
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Yesenia
3 months ago
Definitely 17,600 profit!
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Zack
3 months ago
Wait, how can there be a profit with those numbers?
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Jolanda
4 months ago
I think it’s a profit, right?
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Linn
4 months ago
Gross profit is calculated as revenue minus cost of goods sold.
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Timmy
4 months ago
I’m leaning towards option A, but I’m not completely confident. I hope I remember the inventory calculations correctly!
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Abraham
4 months ago
I feel like the gross profit should be revenue minus cost of goods sold, but I’m confused about how to apply the numbers here.
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Dominga
4 months ago
I remember a similar question where we had to adjust for opening and closing inventories. I think we subtract the closing inventory from the sum of opening inventory and purchases.
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Luis
5 months ago
I think we need to calculate the cost of goods sold first, but I'm not entirely sure how to do that with the inventories.
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Gracie
5 months ago
Okay, let me think this through. If the opening inventory was 1,500, the purchases were 13,200, and the closing inventory was 8,000, then the cost of goods sold must be 6,700. So the gross profit would be 24,300 - 6,700 = 17,600. I think I've got it!
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Chanel
5 months ago
No problem, I've got this. The key is to remember the basic formula: Revenue - Cost of Goods Sold = Gross Profit. I'll work through the numbers step-by-step and I'm confident I can get the right answer.
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Dean
5 months ago
I'm a bit confused on how to calculate the cost of goods sold here. Do we use the opening inventory, closing inventory, and purchases? Or is there another formula I'm missing?
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Paris
5 months ago
Hmm, this looks straightforward enough. I'll just need to plug the numbers into the gross profit formula: Revenue - Cost of Goods Sold. Should be a quick calculation.
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Nana
5 months ago
Okay, let's think this through step-by-step. We have the revenue, opening and closing inventories, and purchases. I think we need to calculate the cost of goods sold and then subtract that from the revenue to get the gross profit.
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Glendora
10 months ago
Ooh, an accounting question! My time to shine. *adjusts glasses* Alright, let's crunch those numbers and find the right answer. No pressure, right?
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Tiara
9 months ago
D) 6,700 profit
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Dacia
9 months ago
Let's calculate the gross profit.
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Olene
9 months ago
A) 17,600 profit
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Leah
10 months ago
Gross profit, huh? I'm gonna go with option E, 31,000 profit. Why? Because it's the biggest number, and who doesn't love a big profit? *winks*
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Twila
9 months ago
User3: I agree with User1, D) 6,700 profit seems right.
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Paz
9 months ago
No problem! It's always good to double-check, especially with numbers.
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Salena
9 months ago
User2: I'm going with A) 17,600 profit.
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Lorrine
9 months ago
User1: I think the answer is D) 6,700 profit.
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Soledad
9 months ago
Oh, really? I guess I got a bit carried away with the big numbers. Thanks for pointing that out!
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Glenn
9 months ago
I think you might have misread the options. The correct answer is actually D) 6,700 profit.
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Roy
10 months ago
Ah, I remember this type of question from my accounting classes. Time to put my skills to the test! *cracks knuckles* Let's do this.
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Virgie
10 months ago
Hmm, okay, I need to review my inventory and cost of goods sold formulas here. Gross profit is revenue minus cost of goods sold, and cost of goods sold is beginning inventory plus purchases minus ending inventory. I'll work this out step-by-step and double-check my answer.
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Kristal
10 months ago
This looks like a straightforward accounting question. Let me think this through - revenue of 24,300, opening inventory of 1,500, closing inventory of 8,000, and purchases of 13,200. I'm going to go with option A, 17,600 profit.
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Amber
9 months ago
Great, it's always good to double-check the numbers before making a final decision.
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Alysa
10 months ago
So, in this case, it would be 24,300 - (1,500 + 13,200 - 8,000) = 17,600.
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Jacquelyne
10 months ago
Yes, that's right. The formula for calculating gross profit is revenue minus cost of goods sold.
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Chanel
10 months ago
I agree with you, option A, 17,600 profit, seems to be the correct answer.
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Yolando
11 months ago
But Entity HJ had revenue of 24,300 and purchases of 13,200, so the gross profit should be higher than 6,700 loss.
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Jolene
11 months ago
I disagree, I believe it's B) 6,700 loss.
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Yolando
11 months ago
I think the answer is A) 17,600 profit.
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