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CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 88
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

The Finance Director of EFG company has made the following statements regarding the recording of expenditure relating to the entity's property, plant and equipment (PPE) in the nominal ledger.

Which THREE of the following statements are true?

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Suggested Answer: A, C, F

Contribute your Thoughts:

2 days ago
B is a strange one. Why would the cost of insurance be debited to the PPE account? That doesn't make any sense.
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13 days ago
A, C, and F are correct. The depreciation charge and loss on disposal reduce profit, and depreciation reduces the carrying value of PPE.
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7 days ago
A) The annual depreciation charge reduces EFG's profit for the year.
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