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CIMA Exam CIMAPRA17-BA3-1 Topic 4 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 100
Topic #: 4
[All CIMAPRA17-BA3-1 Questions]

What will be the effect on the financial statements if the closing inventory figure is decreased?

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Suggested Answer: A

Contribute your Thoughts:

Cora
1 months ago
Ah, the old closing inventory conundrum. Let me think this through... Decrease in inventory, increase in cost of sales, decrease in gross profit. Yep, gotta be D. Now, if only I could find a way to decrease my grocery bill like that!
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Nikita
13 days ago
I wish decreasing my grocery bill was as easy as decreasing inventory!
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Amira
14 days ago
Yeah, that makes sense. It's all about the financial statements.
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Iluminada
1 months ago
I think it's D. Decrease in inventory, increase in cost of sales, decrease in gross profit.
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Gilbert
2 months ago
Aha! I remember this from my last accounting class. Decrease in closing inventory equals increase in cost of sales, which means a decrease in gross profit. Easy peasy, option D it is.
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Bernardine
4 days ago
So, the correct option is D - An increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.
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Tonette
7 days ago
That's correct, it will also result in a decrease in gross profit.
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Jacob
8 days ago
I think you're right, a decrease in closing inventory will lead to an increase in cost of sales.
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Venita
2 months ago
Okay, I've got this. If the closing inventory goes down, that means the cost of sales goes up, and the gross profit goes down. That's just basic accounting, right? I'll go with option D.
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Ma
24 days ago
Farrah: Exactly, it all makes sense now.
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Jerry
1 months ago
User 3: So, the correct option would be D then.
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Farrah
1 months ago
User 2: Yeah, and that will lead to a decrease in gross profit.
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Iluminada
1 months ago
User 1: I think you're right. If the closing inventory decreases, the cost of sales will increase.
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Barney
2 months ago
I think option D is correct. It will result in an increase in cost of sales and a decrease in gross profit.
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Britt
2 months ago
Hmm, let's see. If the closing inventory figure decreases, that means the cost of goods sold will increase, right? So, I think the answer is D. Hey, maybe I should keep an inventory of my socks to avoid this problem!
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Curt
1 months ago
Vernell: Maybe keeping track of your inventory like you said with your socks is a good idea to avoid these issues.
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Vernell
1 months ago
Eden: Yes, exactly. And it will also result in a decrease in the inventory figure in the statement of financial position.
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Eden
2 months ago
User 2: So that means there will be a decrease in gross profit, right?
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Maryanne
2 months ago
User 1: I think you're right, if the closing inventory figure decreases, the cost of sales will increase.
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Tashia
2 months ago
I agree with you, Sheldon. I believe it will lead to a decrease in the inventory figure in the statement of financial position.
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Sheldon
3 months ago
I think if the closing inventory figure is decreased, it will affect the financial statements.
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