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

Which of the following is the correct double entry for a prepayment?
A) Debit expense Credit prepayment (current asset)
B) Debit prepayment (current liability) Credit expense
C) Debit prepayment (current asset) Credit expense
D) Debit expense Credit prepayment (current liability)

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?

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Suggested Answer: A

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

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Lettie
10 months ago
Prepayments are always considered current assets in accounting.
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Kenneth
10 months ago
I thought prepayments were liabilities, not assets?
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Jina
11 months ago
Wait, isn't prepayment a current asset?
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Annabelle
11 months ago
I agree, C is the right choice!
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Alesia
11 months ago
It's definitely C, debit prepayment and credit expense.
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Jaime
11 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
11 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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