CIMAPRA19-F01-1 Exam - Topic 2 Question 11 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 11
Topic #: 2

Which of the following is an effect of using equity accounting to include an entity in the consolidated statement of financial position of a group?

AA single figure is included in net assets which is the sum of the initial cost of investment in the investee entity plus the group share of all changes in net assets since acquisition.

B100% of each asset and liability of the investee entity is included with the investing entity's balances.

CThe group share of each asset and liability of the investee entity is included with the investing entity's balances.

DThe investment in the investee entity is included in non-current assets at cost to the investing entity.

Show Suggested Answer

Suggested Answer: A

by Layla at May 08, 2022, 01:29 AM

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5 months ago

A is correct, that's how equity accounting works!

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Hmm, I'm a bit unsure about this one. I know we need to set up the default warehouse, but I'm not sure if we should use the INV_DEFAULT_WHSE_ID or INV_DEFAULT_ORG_ID profile option. I'll need to review the details carefully.

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Keva

5 months ago

This looks straightforward. I just need to add the T/R spacing to the low site Tx frequency to get the high site Tx frequency. I'm confident I can solve this problem.

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CIMAPRA19-F01-1 Exam - Topic 2 Question 11 Discussion

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