BlackFriday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 88
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

The Finance Director of EFG company has made the following statements regarding the recording of expenditure relating to the entity's property, plant and equipment (PPE) in the nominal ledger.

Which THREE of the following statements are true?

Show Suggested Answer Hide Answer
Suggested Answer: A, C, F

by Alline at May 22, 2024, 03:50 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA3-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Lindy
5 months ago
Wait, so the Finance Director is basically testing us on our ability to differentiate between capital and revenue expenditures? Sounds like a real *asset* of a question!
upvoted 0 times
...
Nguyet
5 months ago
E is just plain wrong. The loss on disposal is not recorded in a liability account, that's ridiculous!
upvoted 0 times
...
Brent
5 months ago
D is a good one. The cost of repainting the office should be expensed, not capitalized.
upvoted 0 times
Barrett
5 months ago
D) The cost of repainting the office is credited to the repairs expense account.
upvoted 0 times
...
Roosevelt
5 months ago
B) The cost of insurance for the factory is debited to the PPE asset account.
upvoted 0 times
...
Margurite
5 months ago
A) The annual depreciation charge reduces EFG's profit for the year.
upvoted 0 times
...
...
Dusti
6 months ago
B is a strange one. Why would the cost of insurance be debited to the PPE account? That doesn't make any sense.
upvoted 0 times
Donte
5 months ago
C) The loss on the disposal of PPE reduces EFG's profit for the year
upvoted 0 times
...
Domonique
5 months ago
E) The loss on the disposal of PPE is recorded in a liability account
upvoted 0 times
...
Gilma
5 months ago
C) The loss on the disposal of PPE reduces EFG's profit for the year
upvoted 0 times
...
Amber
5 months ago
A) The annual depreciation charge reduces EFG's profit for the year.
upvoted 0 times
...
Lynelle
5 months ago
C) The loss on the disposal of PPE reduces EFG's profit for the year
upvoted 0 times
...
Cecilia
5 months ago
A) The annual depreciation charge reduces EFG's profit for the year.
upvoted 0 times
...
Sherly
5 months ago
A) The annual depreciation charge reduces EFG's profit for the year.
upvoted 0 times
...
...
Pearly
6 months ago
A, C, and F are correct. The depreciation charge and loss on disposal reduce profit, and depreciation reduces the carrying value of PPE.
upvoted 0 times
Shad
5 months ago
The cost of repainting the office is credited to the repairs expense account.
upvoted 0 times
...
Dorthy
5 months ago
F) The annual depreciation charge reduces the carrying value of PPE
upvoted 0 times
...
Pansy
5 months ago
C) The loss on the disposal of PPE reduces EFG's profit for the year
upvoted 0 times
...
Shad
5 months ago
The depreciation charge and loss on disposal reduce profit, and depreciation reduces the carrying value of PPE.
upvoted 0 times
...
Clorinda
6 months ago
A) The annual depreciation charge reduces EFG's profit for the year.
upvoted 0 times
...
...

Save Cancel