CIMA Exam CIMAPRA19-F01-1 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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Kip

2 days 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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Laurel

5 days ago

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

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Jin

6 days 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

9 days 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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Charisse

10 days ago

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

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Alaine

11 days ago

I think statement A is true.

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