CIMA Exam CIMAPRA19-F01-1 Topic 4 Question 84 Discussion

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

Question #: 84
Topic #: 4

The following information is extracted from OO's statement of financial position at 31 March:

Included in other payables is interest payable of $80,000 at 31 March 20X2 and $73,000 at 31 March 20X1.

The following information if included within OO's statement of profit or loss for the year ended 31 March 20X2:

Included within finance cost is $124,000 which relates to interest paid on a finance lease. 00 includes finance lease interest within financing activities on its statement of cash flows.________________

Within OO's statement of cash flow for the year ended 31 March 20X2 which figures should be included to reflect the changes in working capital within the net cash flow from operating activities?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: C

by Chau at Apr 13, 2024, 02:58 PM

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Jettie

10 days ago

Ooh, I've got a good feeling about this one! *winks* Just kidding, but seriously, I think we're on the right track. Let's keep discussing and see if we can figure it out.

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Maryln

12 days ago

Alright, let's break this down step-by-step. What do we know about the interest payable and the finance lease interest? I feel like that's the key to solving this.

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Xuan

13 days ago

I think Option B looks promising, but I'm not completely confident. The question mentions that the interest on the finance lease is included in financing activities, so that might be a clue.

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Cary

14 days ago

Hmm, I'm not too sure about this one. I feel like I need to go back and review the concepts of cash flow statements and working capital. Anyone have any tips?

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Laurel

16 days ago

I agree, this is a tricky one. We need to look at the information provided and figure out how the interest expense on the finance lease should be treated.

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Art

18 days ago

This question is really testing our understanding of cash flow statements and the treatment of interest expense. I think the key is to determine which changes in working capital items should be included in the net cash flow from operating activities.

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