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CIMAPRA19-F03-1 Exam - Topic 4 Question 54 Discussion

Aconsultancycompanyis dependent for profits and growth on the high value individuals it employs.The company hasrelatively fewtangible assets.Select the most appropriate reason for the net asset valuation method being considered unsuitable for such a company.
A) It does not account for the intangible assets.
B) It accounts for the intangible assets at historical value.
C) It accounts for intangible assets at net realisable value.
D) It does not account for tangible assets.

CIMAPRA19-F03-1 Exam - Topic 4 Question 54 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 54
Topic #: 4
[All CIMAPRA19-F03-1 Questions]

Aconsultancycompanyis dependent for profits and growth on the high value individuals it employs.

The company hasrelatively fewtangible assets.

Select the most appropriate reason for the net asset valuation method being considered unsuitable for such a company.

Show Suggested Answer Hide Answer
Suggested Answer: A

by Annelle at Jul 25, 2022, 10:43 PM

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Delbert
8 months ago
D is irrelevant here, we need to focus on intangibles!
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Meghann
9 months ago
Wait, are we sure about A? Seems too simplistic.
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Danica
9 months ago
Totally agree with A! Tangibles don't reflect our value.
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Maynard
9 months ago
I think B makes more sense, though. Historical value is key.
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Jerrod
9 months ago
A is definitely the right choice! Intangibles matter.
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Isaiah
9 months ago
I feel like D is definitely not the answer since the question emphasizes the lack of tangible assets, but I can't recall why that would make the net asset method unsuitable.
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Ressie
9 months ago
I practiced a similar question where we had to evaluate intangible assets, and I think the historical value aspect is crucial, so maybe B is the right choice?
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Belen
9 months ago
I'm a bit unsure, but I think option A makes sense since the company relies heavily on its employees rather than physical assets.
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Nenita
10 months ago
I remember discussing how the net asset valuation method often overlooks the value of human capital, which seems relevant here.
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My
10 months ago
I think the answer is C. Key Performance Indicator (KPI) is a common metric used to measure progress towards organizational goals.
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Lorenza
10 months ago
Okay, let me think this through step-by-step. Choropleth maps are used to visualize data on a geographic map, so the command is likely related to geographic data. I'll go with option A, geostats, since that sounds like it could be the right command.
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Claribel
10 months ago
The fact that it uses a single RPM to extract and install the software is interesting. I'll make sure to select that option as well. I'm feeling confident about A, B, and C.
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Nana
10 months ago
I might be mixing things up, but I thought address.transfer() is safe due to the gas limit. However, I could be wrong?
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