CIMAPRA17-BA3-1 Exam - Topic 1 Question 22 Discussion

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

Question #: 22
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

Which of the following is the correct double entry for a prepayment?

ADebit expense Credit prepayment (current asset)

BDebit prepayment (current liability) Credit expense

CDebit prepayment (current asset) Credit expense

DDebit expense Credit prepayment (current liability)

Show Suggested Answer

Suggested Answer: A

by Merissa at May 07, 2022, 08:03 AM

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Lettie

7 months ago

Prepayments are always considered current assets in accounting.

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Kenneth

7 months ago

I thought prepayments were liabilities, not assets?

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Jina

7 months ago

Wait, isn't prepayment a current asset?

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Annabelle

8 months ago

I agree, C is the right choice!

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Alesia

8 months ago

It's definitely C, debit prepayment and credit expense.

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Jaime

8 months ago

This is a good example of a question that requires attention to detail. I'll make sure to thoroughly analyze the date, time, and version information to determine the correct answer.

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Gilma

8 months ago

Hmm, I'm a bit confused by the route reflector setup and the local preference values. I'll need to think through the BGP decision process to figure out the correct answer.

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