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CIMA Exam CIMAPRA19-F01-1 Topic 3 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 86
Topic #: 3
[All CIMAPRA19-F01-1 Questions]

The following information relates to AA.

Extract of Trial Balance at 31 December 20X4;

Notes

(i) Inventory at 31 December 20X4 was valued at cost at $30.

(ii) The loan which was received on 1 July 20X4 is repayable in 20X9.

(iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3. AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is expected amounting to $20.

(iv) Cost of sales, administration and distribution costs need to be adjusted for the following:

What figures should be entered on the face of the Statement of profit or Loss for the year ended 31 December 20X4 in relation to Interest and Corporate income tax?

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Suggested Answer: A

Contribute your Thoughts:

Devon
3 days ago
No, I think interest has to be $50 because it's for half a year already. So, I'm leaning towards C or D.
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Dominque
7 days ago
I'm stuck between options A and C. But I think interest should be $25, right?
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In
22 days ago
Yeah, it's kinda tricky with all those notes. What figures are you putting down for Interest and Corporate income tax?
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Lenna
28 days ago
Did you see that question on AA's trial balance and statement of profit or loss?
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