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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Daniel

4 months 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

3 months ago

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

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Alecia

3 months ago

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

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Dorothy

3 months 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

4 months 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

3 months ago

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

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Gary

3 months ago

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

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Laurel

4 months ago

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

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Jin

4 months 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

4 months 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

3 months ago

Agreed, B and C are the correct answers.

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Sabra

3 months ago

So the correct statements would be B and C.

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Antonio

4 months ago

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

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Howard

4 months ago

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

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Charisse

4 months ago

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

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Alaine

4 months ago

I think statement A is true.

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