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

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.
A) Understating gross profit by 2,500 and understating net profit by 1,500
B) Understating both gross profit and net profit by 2,500
C) Understating gross profit by 2,000 and understating net profit by 2,500
D) Understating both gross profit and net profit by 1,500

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

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 42
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

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.

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Suggested Answer: A

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

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Serina
11 months ago
Are we sure about these calculations? Seems off.
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Aliza
11 months ago
Definitely A, those errors add up!
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Lucy
11 months ago
Wait, how can you misclassify inventory like that?
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Ty
11 months ago
I think it’s actually option B, though.
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Ivette
11 months ago
Looks like option A is the right choice.
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Merilyn
11 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
12 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
12 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
12 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
12 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
12 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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