Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CIMA Exam CIMAPRA17-BA3-1 Topic 3 Question 106 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 106
Topic #: 3
[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

Contribute your Thoughts:

Estrella
11 days ago
I disagree with statement E. Loss on disposal should not be recorded in a liability account.
upvoted 0 times
...
Krystina
12 days ago
I agree with that. I also think statement F is true because depreciation reduces carrying value.
upvoted 0 times
...
Eun
20 days ago
I think statement A is true because depreciation reduces profit.
upvoted 0 times
...
Jacinta
25 days ago
A, C, and F are definitely true. The annual depreciation reduces profit and carrying value, and the loss on disposal reduces profit. The others seem a bit iffy.
upvoted 0 times
Karma
4 days ago
The loss on disposal of PPE definitely reduces profit for the year.
upvoted 0 times
...
Carlee
10 days ago
Yes, the annual depreciation charge does reduce profit and carrying value.
upvoted 0 times
...
Michell
12 days ago
I agree, A, C, and F are definitely true.
upvoted 0 times
...
...

Save Cancel
a