CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 42 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 42
Topic #: 1

After calculating your company's profit for the year, you discover that:

(a) A non-current asset costing 2,000 has been included in the purchases account; the asset has not been included in the closing inventory figure; nor has it been depreciated by the normal 25% per annum

(b) Closing inventory of raw materials, costing 500, have been treated as closing inventory of stationery.

These two errors have had the effect of.

AUnderstating gross profit by 2,500 and understating net profit by 1,500

BUnderstating both gross profit and net profit by 2,500

CUnderstating gross profit by 2,000 and understating net profit by 2,500

DUnderstating both gross profit and net profit by 1,500

Show Suggested Answer

Suggested Answer: A

by Glenna at May 08, 2022, 11:28 AM

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