CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 91 Discussion

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

Question #: 91
Topic #: 1

In the year ended 31 December 20X7, FG leased a piece of machinery. The accountant of FG had prepared the financial statements for the year to 31 December 20X7 on the basis of the lease being an operating lease.

However, following the end of year audit it has been agreed that the machinery is in fact held under a finance lease and therefore the financial statements need to be corrected.

Thecorrection will have which THREE of the following affects on the financial statements?

ANon-current assets will increase.

BFinance costs will increase.

CCurrent liabilities will increase.

DNon-current liabilities will decrease.

EDepreciation costs will decrease.

FNon-current assets will decrease.

Show Suggested Answer

Suggested Answer: B

by Jestine at Jul 01, 2024, 09:03 PM

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Tyra

1 months ago

Well, well, looks like the accountant had a bit of a brain freeze on this one. I guess they were hoping the auditors wouldn't notice the old 'hide the finance lease' trick.

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Polly

8 days ago

C) Current liabilities will increase.

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Leontine

22 days ago

B) Finance costs will increase.

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Marva

1 months ago

A) Non-current assets will increase.

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Willow

2 months ago

I'm feeling confident about this one. A, B, and C are definitely the correct answers. Though I'm a little curious to see what kind of humorous comment my fellow candidates might come up with.

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