CIMAPRA17-BA3-1 Exam - Topic 1 Question 42 Discussion

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

Question #: 42
Topic #: 1

After calculating your company's profit for the year, you discover that:

(a) A non-current asset costing 2,000 has been included in the purchases account; the asset has not been included in the closing inventory figure; nor has it been depreciated by the normal 25% per annum

(b) Closing inventory of raw materials, costing 500, have been treated as closing inventory of stationery.

These two errors have had the effect of.

AUnderstating gross profit by 2,500 and understating net profit by 1,500

BUnderstating both gross profit and net profit by 2,500

CUnderstating gross profit by 2,000 and understating net profit by 2,500

DUnderstating both gross profit and net profit by 1,500

Show Suggested Answer

Suggested Answer: A

by Glenna at May 08, 2022, 11:28 AM

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Serina

4 months ago

Are we sure about these calculations? Seems off.

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Aliza

4 months ago

Definitely A, those errors add up!

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Lucy

4 months ago

Wait, how can you misclassify inventory like that?

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Ty

4 months ago

I think it’s actually option B, though.

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Ivette

5 months ago

Looks like option A is the right choice.

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Merilyn

5 months ago

The lack of current profit could be a limitation, since the CIV method is typically used for profitable businesses. I'll need to analyze that carefully.

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Clement

5 months ago

Okay, let's see here. I know territory management can have a big impact on sharing and forecasting, so I'll definitely want to focus on those aspects. Gotta make sure I don't miss anything crucial.

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Brinda

5 months ago

Hmm, I'm a bit unsure about this. I'll have to review my notes on tool usage to figure this out.

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Mari

5 months ago

I think the key here is understanding the different audit types and their relationships to the auditee. Third-party audits seem to be the most independent based on that.

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Twanna

5 months ago

This looks like a straightforward question about Azure security features. I'll need to review the key differences between just-in-time access, Azure Defender, Azure Firewall, and Azure Application Gateway to determine the best recommendation.

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Anabel

5 months ago

I'm a little confused by this question. I'm not entirely sure how consolidating shipments and reducing pickups would impact the different cost categories listed. I'll have to review my notes and try to reason through the logic here.

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