CIMAPRA17-BA3-1 Exam - Topic 1 Question 21 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 21
Topic #: 1

On 31 December 20X6 GHI makes a bonus issue of 50,000 shares On this dale the nominal value of the shares is $1 and the market value is $3 GHI has a share premium account with a substantial credit balance. The share capital account is credited correctly in the nominal ledger. Which of the following statements is TRUE?

AThe bonus issue is valued at $3 per share and the debit entry is to the cash account

BThe bonus issue is valued at $1 per share and the debit entry is to the share premium account

CThe bonus issue is valued at $1 per share and the debit entry is to the cash account

DThe bonus issue is valued at $3 per share and the debit entry is to the share premium account

Show Suggested Answer

Suggested Answer: B

by Lavonna at May 09, 2022, 04:00 PM

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Melodie

7 months ago

I thought it was $3 per share at first, but I see the logic now.

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Wenona

7 months ago

Definitely B, share premium is the right account here.

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Caprice

7 months ago

Wait, why would the debit go to cash? That doesn’t make sense.

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Kenneth

8 months ago

Totally agree, it’s all about the nominal value!

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Solange

8 months ago

The bonus issue is valued at $1 per share.

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Roxanne

8 months ago

Hmm, this seems like a straightforward question. I'll need to carefully read the problem statement and solution to determine if this is a P1 level Okta support ticket issue.

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Catalina

8 months ago

I practiced a similar question where we had to configure flow monitor on an ASA, but I can't recall if it was `ip flow monitor` or something else.

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Georgene

8 months ago

I remember practicing a question where race conditions led to incorrect balances too, so I think that might apply here.

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Valentin

8 months ago

Okay, I think I see it now. The question is asking for the attributed sales, which means we need to use the regression model to calculate the contribution of the Facebook channels to the overall sales. The coefficients give us the weights, and we just plug in the Week 2 values. Easy!

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tachy_22

5 years ago

Right Answers: AD - Study Guide - Endpoint Compliance - Monitors: Agent Persitent + Custom Scan

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