Discuss CIMA CIMAPRA19-F03-1 Exam Topic 4 Question 54

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.

AIt does not account for the intangible assets.

BIt accounts for the intangible assets at historical value.

CIt accounts for intangible assets at net realisable value.

DIt does not account for tangible assets.

Suggested Answer: A

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13 comments · newest first

Delbert 12 months ago

D is irrelevant here, we need to focus on intangibles!

Meghann 12 months ago

Wait, are we sure about A? Seems too simplistic.

Danica 1 year ago

Totally agree with A! Tangibles don't reflect our value.

Maynard 1 year ago

I think B makes more sense, though. Historical value is key.

Jerrod 1 year ago

A is definitely the right choice! Intangibles matter.

Isaiah 1 year 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.

Ressie 1 year 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?

Belen 1 year 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.

Nenita 1 year ago

I remember discussing how the net asset valuation method often overlooks the value of human capital, which seems relevant here.

My 1 year ago

I think the answer is C. Key Performance Indicator (KPI) is a common metric used to measure progress towards organizational goals.

Lorenza 1 year 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.

Claribel 1 year 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.

Nana 1 year ago

I might be mixing things up, but I thought address.transfer() is safe due to the gas limit. However, I could be wrong?

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