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CIMAPRA19-F01-1 Exam - Topic 5 Question 100 Discussion

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

Question #: 100
Topic #: 5

[All CIMAPRA19-F01-1 Questions]

Which TWO of the following statements about accounting for associates are true?

AIntra associate transactions are not eliminated

BUnrealised profits are adjusted for

CIntra associate transactions are eliminated

DUnrealised profits are not adjusted for

Show Suggested Answer

Suggested Answer: B, D, E

by Launa at Sep 15, 2024, 12:22 PM

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Yolando

8 months ago

B is definitely false, unrealised profits must be adjusted!

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Fletcher

8 months ago

I thought intra associate transactions were eliminated...

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Shawnta

8 months ago

Wait, are unrealised profits really not adjusted?

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Lachelle

8 months ago

I agree, A and D make sense!

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Joni

9 months ago

A and D are true.

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Joseph

9 months ago

I’m confused about unrealised profits; I thought they were adjusted, but now I’m questioning if that’s always the case.

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Stephaine

9 months ago

I feel like I saw a practice question where intra associate transactions were eliminated, but I can't recall the details clearly.

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Oliva

9 months ago

I remember something about unrealised profits needing to be adjusted, so I might lean towards option B being true.

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Maile

9 months ago

I think intra associate transactions are usually not eliminated, but I'm not completely sure.

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Jeannetta

9 months ago

I feel pretty good about this question. Eliminating intra-associate transactions and adjusting for unrealized profits are the two true statements here.

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Lilli

9 months ago

I'm not totally confident on this one. I'll need to carefully read through the options and think about the accounting principles involved.

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Enola

9 months ago

Hmm, I'm a bit unsure about this one. I'll need to review my notes on the differences between intra-company and inter-company transactions.

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Tamera

9 months ago

This one looks tricky, but I think I can work through it. Let me think through the key points about accounting for associates.

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Yolando

10 months ago

Okay, I've got this. The key is to remember that unrealized profits need to be adjusted for, and intra-associate transactions are eliminated, not left as is.

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Daniel

1 year ago

Well, this is a tricky one. I'm going to go with B and C, but I'm not entirely confident. Accounting can be a real headache sometimes!

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Dahlia

1 year ago

Got it, thanks for the clarification. Accounting sure does require attention to detail.

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Alecia

1 year ago

Yes, it can be tricky. But remember, intra associate transactions are actually eliminated, so C is correct.

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Dorothy

1 year ago

I think you're on the right track with B and C. Accounting for associates can definitely be confusing.

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Kip

1 year ago

Haha, this question is a classic trick question! I bet the correct answers are B and C, since accountants just love to complicate things.

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Yuki

1 year ago

Yeah, accountants always find a way to make things tricky.

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Gary

1 year ago

I think you're right, B and C seem like the correct answers.

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Laurel

1 year ago

I believe statement C is also true. Intra associate transactions are eliminated to avoid double counting.

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Jin

1 year ago

Hmm, I'm a bit confused on this one. I thought we were supposed to eliminate intra-associate transactions, but I could be wrong. Anyway, I'll go with B and C just to be safe.

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Tresa

1 year ago

I'm pretty sure that intra-associate transactions are eliminated, and unrealized profits are adjusted for. So I'd go with B and C.

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Torie

1 year ago

Agreed, B and C are the correct answers.

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Sabra

1 year ago

So the correct statements would be B and C.

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Antonio

1 year ago

Yes, that's correct. And unrealized profits are also adjusted for.

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Howard

1 year ago

I think you're right, intra-associate transactions are eliminated.

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Charisse

1 year ago

I agree with you, Alaine. Intra associate transactions are not eliminated.

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Alaine

1 year ago

I think statement A is true.

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