CIMAPRA19-F02-1 Exam - Topic 1 Question 85 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 85
Topic #: 1

Mr. Rodgers is an accountant for JK Pic. He is asked to record a particular share-based payment in the company's accounts and obliges by debiting as an expense the first relevant account and crediting the corresponding double-entry as a liability.

Which type of share-based payment has Mr. Rodgers recorded?

ACash-settled in the future

BCash-settled immediately

CEquity-settled immediately

DEquity-settled in the future

ENeither cash nor equity-settled

Show Suggested Answer

Suggested Answer: A

by Chandra at Apr 26, 2024, 05:05 AM

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Jeniffer

6 months ago

Isn't it weird that he debits an expense but credits a liability?

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Denise

6 months ago

Wait, how can he credit a liability for an expense?

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Pearlie

6 months ago

Definitely cash-settled immediately!

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Elly

7 months ago

I think it's equity-settled in the future.

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Therese

7 months ago

Sounds like a cash-settled payment to me!

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Shaun

7 months ago

I feel like if it’s a liability, it leans towards cash-settled, but I need to double-check if it’s immediate or future.

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Sophia

7 months ago

I’m a bit lost on this one. I thought equity-settled payments were recorded differently, but I can’t recall the specifics.

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Dino

8 months ago

This sounds similar to a practice question we did where the accountant recorded an expense and a liability. I think that was cash-settled in the future?

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Paola

8 months ago

I remember we discussed share-based payments in class, and I think if he’s crediting a liability, it might be cash-settled, but I’m not entirely sure.

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Dulce

8 months ago

This is a good test of my knowledge on share-based payments. I'll use the process of elimination to narrow down the options and select the most appropriate answer.

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Deja

8 months ago

I'm a little confused by the question. The details about debiting an expense and crediting a liability don't seem to match up with the answer choices. I'll need to re-read this a few times to make sure I'm understanding it correctly.

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Aretha

8 months ago

Okay, I think I've got it. The fact that the expense is debited and a liability is credited points to a cash-settled share-based payment. I'll go with option B.

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Brett

8 months ago

Hmm, I'm a bit unsure about this one. The wording is a bit tricky, and I want to make sure I understand the key details before selecting an answer.

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Karon

8 months ago

This seems like a straightforward accounting question. I'll carefully review the details and think through the different types of share-based payments to determine the correct answer.

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Kassandra

8 months ago

I'm a little confused about the wording of the question. I want to make sure I understand exactly what it's asking before I start crunching the numbers.

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Kanisha

8 months ago

This seems like a straightforward question about the most efficient strategy for a litigation hold search. I'd focus on evaluating email and electronic systems, as that's likely to yield the most accurate and comprehensive results.

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Lavera

8 months ago

I remember DRI is usually used to replace a behavior with a different one, so maybe that's it. But I'm kind of confused about the specifics.

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Franchesca

8 months ago

Hmm, I'm a bit confused about the timestamps - I think they increase by the time carried by the packet, but I'm not 100% sure. I'll have to think about that one.

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