CIMA Exam CIMAPRA17-BA3-1 Topic 3 Question 108 Discussion

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

Question #: 108
Topic #: 3

In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.

Which of the following is the impact of adjusting for this event?

AProfits increase and allowance increases.

BReceivables decrease and allowance increases

CReceivables unchanged and profits decrease

DReceivables decrease and profits decrease

Show Suggested Answer

Suggested Answer: D

by Celia at Mar 06, 2025, 11:39 PM

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Val

7 days ago

I believe profits will decrease as well.

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Azalee

9 days ago

But what about profits? Will they increase or decrease?

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Tequila

16 days ago

Yes, I agree. The receivables will decrease.

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Val

17 days ago

I think the impact is on receivables.

upvoted 0 times

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