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CIMAPRA17-BA3-1 Exam - Topic 1 Question 84 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 84
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

A decrease in the allowances for receivables would result in:

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Suggested Answer: B

by Kanisha at Apr 10, 2024, 09:37 PM

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Nobuko
6 months ago
I thought it would decrease net profit instead.
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Jackie
6 months ago
It directly impacts the balance sheet, for sure.
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Bernadine
6 months ago
Wait, are we sure about that? Sounds off to me.
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Tamar
7 months ago
Totally agree, it boosts the working capital!
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Taryn
7 months ago
A decrease in allowances means more working capital.
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Tu
7 months ago
I believe that reducing allowances could actually decrease working capital, but I need to double-check my notes on that.
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Melynda
7 months ago
I’m a bit confused about how this impacts liabilities. I thought allowances were more about assets and receivables rather than liabilities.
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Laura
8 months ago
I remember practicing a similar question where we discussed how allowances affect net profit. I feel like this could relate to option D.
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Elfrieda
8 months ago
I think a decrease in allowances for receivables might lead to an increase in working capital, but I'm not entirely sure.
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Tiara
8 months ago
I'm pretty confident the answer is B. A decrease in allowances means the company is being more aggressive in collecting on receivables, which would reduce current assets and working capital.
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Joanne
8 months ago
Okay, let me walk through this step-by-step. A decrease in allowances means the company is expecting fewer uncollectible accounts, so that should increase net accounts receivable on the balance sheet. That would then increase current assets and working capital. I think the answer is A.
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Brandon
8 months ago
Hmm, I'm a bit unsure about this one. I know a decrease in allowances would affect the balance sheet, but I'm not totally clear on whether it would increase or decrease working capital.
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Melissa
8 months ago
This seems like a straightforward question about the impact of a decrease in allowances for receivables. I'll need to think through the accounting implications carefully.
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Loreta
8 months ago
Okay, let me see. We're dealing with plug-ins for a Power Platform solution, so the isolation mode needs to be secure and reliable. I think Sandbox is the way to go, but I'll double-check my notes just to be sure.
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Jutta
8 months ago
I think this question is asking about the concept of sampling in computer graphics, like how the software samples different areas of a pixel to determine the final color. Option B sounds like the right answer to me.
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Albert
8 months ago
I'm kind of confused; I thought Promises could still work with callbacks, but I can't recall the exact details.
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Jill
8 months ago
I think I've got this. Spark tasks are divided into stages, and each stage can be further divided into individual jobs. The key here is that the question is asking if the "score" is marked as "shuffle" for each of these jobs. I'm pretty confident that the answer is true, as the "shuffle" operation is a crucial part of Spark's data processing pipeline.
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Nan
1 year ago
Wait, so they're decreasing the allowances for receivables? That's like saying, 'Hey, we're going to be even more optimistic about those deadbeat customers actually paying us back!' Good luck with that one, folks.
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Lindsey
11 months ago
D) A decrease in net profit
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Temeka
11 months ago
C) An increase in liabilities
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Tommy
11 months ago
B) A decrease in working capital
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Fausto
11 months ago
A) An increase in working capital
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Shay
1 year ago
This one's tricky, but I'm going with B) A decrease in working capital. If the company is lowering its allowances, that means it's expecting to collect more of those outstanding receivables, which would free up cash and reduce working capital.
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Dominga
11 months ago
I see your point, but I still think B) A decrease in working capital is the most likely outcome. It would free up cash for the company.
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Felix
12 months ago
But wouldn't it also mean an increase in liabilities? If they're reducing allowances, that means they're expecting to collect more, which would increase their assets and liabilities.
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Carolann
12 months ago
I think you're right, B) A decrease in working capital makes sense. It means the company is expecting to collect more of the receivables.
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Jonell
1 year ago
D) A decrease in net profit makes the most sense to me. Lowering the allowances for receivables is like being more optimistic about collecting on those accounts, which would boost the bottom line.
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Gerald
11 months ago
D) A decrease in net profit
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Tawanna
11 months ago
C) An increase in liabilities
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Rodolfo
12 months ago
B) A decrease in working capital
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Brandon
12 months ago
C) An increase in liabilities
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Ezekiel
12 months ago
B) A decrease in working capital
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Catarina
1 year ago
A) An increase in working capital
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Carissa
1 year ago
A) An increase in working capital
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Luther
1 year ago
Hmm, I'm not so sure. Wouldn't a decrease in the allowances for receivables lead to a decrease in working capital since there would be less cash available? I'll have to think about this one a bit more.
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Sommer
1 year ago
I think it would actually lead to a decrease in net profit.
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Hector
1 year ago
I disagree, I believe it would result in an increase in liabilities.
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Corazon
1 year ago
I think a decrease in allowances for receivables would result in a decrease in working capital.
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Apolonia
1 year ago
I think the correct answer is D) A decrease in net profit. A decrease in the allowances for receivables would mean the company is recognizing more revenue, which would lead to an increase in net profit.
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Brigette
1 year ago
Exactly. It would result in a decrease in working capital because there would be less funds to cover current liabilities.
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Wilford
1 year ago
Oh, I see. So a decrease in allowances for receivables would mean less cash available.
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Sol
1 year ago
Actually, the correct answer is B) A decrease in working capital.
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Glen
1 year ago
I think the correct answer is D) A decrease in net profit.
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