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CIMAPRA17-BA3-1 Exam - Topic 1 Question 87 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 87
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.

Which of the following is the impact of adjusting for this event?

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Suggested Answer: D

by Estrella at May 08, 2024, 04:09 PM

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Kati
3 months ago
Not sure about B, could it really be that straightforward?
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Louis
3 months ago
Major customer liquidation = higher allowance for bad debts.
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Detra
3 months ago
Wait, how can profits just decrease without changing receivables? Sounds off.
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Billi
4 months ago
I agree, B makes the most sense here.
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Sharika
4 months ago
Definitely B, receivables should decrease with that news.
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Venita
4 months ago
I’m confused about whether receivables should stay the same or decrease. I think it might depend on how we recognize the loss, but I can't remember clearly.
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Chantay
4 months ago
I recall that when a customer goes into liquidation, it usually impacts profits negatively. So, I’m leaning towards an option that shows profits decreasing.
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Mollie
4 months ago
I'm not entirely sure, but I feel like the allowance for doubtful accounts should increase, which might mean receivables decrease too.
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Cassie
5 months ago
I think this is similar to a practice question we did about bad debts. I remember that when a customer can't pay, we have to adjust the receivables.
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Enola
5 months ago
I feel pretty confident about this one. The key is that the customer is going into liquidation, so the receivables need to be written down and an allowance needs to be recorded. That would decrease both receivables and profits. Option D seems like the right choice.
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Isaac
5 months ago
Hmm, I'm a bit unsure about this one. I'll need to review the concepts around receivables, allowances, and profit impacts when a customer goes bankrupt.
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Audry
5 months ago
This seems like a straightforward question about the impact of a major customer going into liquidation. I'll need to think through the accounting implications carefully.
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Karon
5 months ago
Okay, let's see. If the customer can't pay, that should decrease the receivables, and the allowance for doubtful accounts would need to increase. I think the profits would then decrease as well. I'll go with option D.
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Fabiola
5 months ago
I'm a bit stumped on this one. The options don't seem to have a clear connection to the outbreak filter for nonviral threats. I'll have to review my notes and try to reason through the logic behind this question.
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Boris
5 months ago
Hmm, this seems like a tricky one. I'll need to think through the different algorithms and how they handle a mix of short and long-lived connections.
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Cary
5 months ago
Hmm, I'm a bit unsure about this one. I'll need to think through the different ways security incidents can be raised and make sure I select the two most appropriate options.
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Larae
2 years ago
Makes sense. So, decrease in receivables and decrease in profits?
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Rosina
2 years ago
Receivables decrease since the customer can't pay, and profits would decrease too, right?
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Rhea
2 years ago
Why D, Carol?
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Rosina
2 years ago
B? I was thinking it might be D.
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Larae
2 years ago
Yeah, but I'm leaning towards B.
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Rhea
2 years ago
This question's a bit tricky, right?
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