CIMA Exam CIMAPRA17-BA3-1 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:

AAn increase in working capital

BA decrease in working capital

CAn increase in liabilities

DA decrease in net profit

Show Suggested Answer

Suggested Answer: B

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

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Sommer

4 days ago

I think it would actually lead to a decrease in net profit.

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Hector

6 days ago

I disagree, I believe it would result in an increase in liabilities.

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Corazon

7 days ago

I think a decrease in allowances for receivables would result in a decrease in working capital.

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

Contribute your Thoughts:

Sommer

Hector

Corazon

Apolonia