MENU
Which TWO of the following statements about accounting for associates are true?
Suggested Answer: B, D, E
Get Premium CIMAPRA19-F01-1 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
30 comments · newest first
YO
Yolando
11 months ago
B is definitely false, unrealised profits must be adjusted!
FL
Fletcher
11 months ago
I thought intra associate transactions were eliminated...
SH
Shawnta
11 months ago
Wait, are unrealised profits really not adjusted?
LA
Lachelle
12 months ago
I agree, A and D make sense!
JO
Joni
12 months ago
A and D are true.
JO
Joseph
1 year ago
I’m confused about unrealised profits; I thought they were adjusted, but now I’m questioning if that’s always the case.
ST
Stephaine
1 year ago
I feel like I saw a practice question where intra associate transactions were eliminated, but I can't recall the details clearly.
OL
Oliva
1 year ago
I remember something about unrealised profits needing to be adjusted, so I might lean towards option B being true.
MA
Maile
1 year ago
I think intra associate transactions are usually not eliminated, but I'm not completely sure.
JE
Jeannetta
1 year ago
I feel pretty good about this question. Eliminating intra-associate transactions and adjusting for unrealized profits are the two true statements here.
LI
Lilli
1 year 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.
EN
Enola
1 year 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.
TA
Tamera
1 year ago
This one looks tricky, but I think I can work through it. Let me think through the key points about accounting for associates.
YO
Yolando
1 year 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.
DA
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!
DA
Dahlia
1 year ago
Got it, thanks for the clarification. Accounting sure does require attention to detail.
AL
Alecia
1 year ago
Yes, it can be tricky. But remember, intra associate transactions are actually eliminated, so C is correct.
DO
Dorothy
1 year ago
I think you're on the right track with B and C. Accounting for associates can definitely be confusing.
KI
Kip
2 years 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.
YU
Yuki
1 year ago
Yeah, accountants always find a way to make things tricky.
GA
Gary
1 year ago
I think you're right, B and C seem like the correct answers.
LA
Laurel
2 years ago
I believe statement C is also true. Intra associate transactions are eliminated to avoid double counting.
JI
Jin
2 years 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.
TR
Tresa
2 years 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.
TO
Torie
1 year ago
Agreed, B and C are the correct answers.
SA
Sabra
1 year ago
So the correct statements would be B and C.
AN
Antonio
1 year ago
Yes, that's correct. And unrealized profits are also adjusted for.
HO
Howard
1 year ago
I think you're right, intra-associate transactions are eliminated.
CH
Charisse
2 years ago
I agree with you, Alaine. Intra associate transactions are not eliminated.
AL
Alaine
2 years ago
I think statement A is true.