CIMAPRA17-BA3-1 Exam - Topic 3 Question 118 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 118
Topic #: 3

A trader commenced business with capital of $20,000. At the end of the financial year he had receivables of $10,000, payables of $6,000, inventory of $12,000, cash of $4,000 and non-current assets costing $16,000.

The profit/loss for the period was:

A$16,000 profit

B$16,000 loss

C$8,000 profit

D$8,000 loss

Show Suggested Answer

Suggested Answer: A

by Blair at Oct 31, 2025, 11:56 AM

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Eric

26 days ago

I’m leaning towards $16,000 loss. Too many expenses!

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Major

1 month ago

I feel like it's an $8,000 profit after all calculations.

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King

1 month ago

But we have to consider the payables too.

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Corinne

1 month ago

Definitely not a loss, I agree with C!

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Brianne

2 months ago

I'm leaning towards option C, $8,000 profit.

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Gearldine

2 months ago

Gotta calculate the profit correctly, it's not that hard!

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Nickolas

2 months ago

Looks like he started with $20k and ended up with $10k in receivables.

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Karma

2 months ago

I'm going with B) $16,000 loss. The non-current assets of $16,000 must have been depreciated or something, right?

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Denae

2 months ago

Haha, this reminds me of the time I got a question wrong on my accounting exam because I forgot to carry the one. Classic mistake!

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Demetra

2 months ago

This is a tricky one. I need to double-check my calculations, but I'm pretty sure the answer is D) $8,000 loss.

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Cecily

3 months ago

Hmm, I'm not so sure. The question mentions receivables and payables, which could impact the profit/loss calculation. I'm leaning towards C) $8,000 profit.

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Xochitl

3 months ago

I think I remember that a loss would mean expenses exceeded income. So, if the assets are higher than liabilities, it could be a profit, but I’m not confident about the exact numbers.

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Felton

3 months ago

I think it's a profit. The assets look good.

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Joanna

3 months ago

If I recall correctly, we need to consider the cash and inventory too. I feel like the answer might be $8,000 profit, but I could be wrong.

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Raymon

3 months ago

I think the answer is A) $16,000 profit. The assets minus the liabilities give a net worth of $30,000, which is $10,000 more than the initial capital of $20,000.

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Martha

4 months ago

I'm not entirely sure, but I think the profit is calculated by looking at total assets minus total liabilities. I might be overthinking it though.

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Carmela

4 months ago

Wait, how can he have a profit with all those expenses?

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Linette

4 months ago

I remember we did a similar question in class about calculating profit using assets and liabilities. I think I need to subtract the payables from the receivables.

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Quinn

4 months ago

Alright, time to put my accounting skills to the test. I think I can work through this systematically and arrive at the correct answer.

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Taryn

4 months ago

I've got this! We just need to calculate the net assets at the end of the period and compare that to the starting capital. The difference will give us the profit or loss.

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Elke

5 months ago

Wait, I'm a bit confused. Do we need to factor in the receivables and payables somehow? I'm not sure how those impact the final profit/loss calculation.

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Tess

5 months ago

Okay, let me think this through. We have the starting capital, the ending assets and liabilities, so I just need to calculate the net change to determine the profit or loss.

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Alishia

5 months ago

Hmm, this looks like a straightforward balance sheet question. I think I can work through this step-by-step to find the profit/loss.

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Tiera

2 days ago

Don't forget the inventory and cash!

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Frederica

7 days ago

I see the receivables and payables.

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