CIMA Exam CIMAPRA17-BA3-1 Topic 4 Question 100 Discussion

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

Question #: 100
Topic #: 4

What will be the effect on the financial statements if the closing inventory figure is decreased?

AAn increase in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

BA decrease in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

CA decrease in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

DAn increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

Show Suggested Answer

Suggested Answer: A

by Cherelle at Sep 19, 2024, 12:44 PM

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Britt

3 days ago

Hmm, let's see. If the closing inventory figure decreases, that means the cost of goods sold will increase, right? So, I think the answer is D. Hey, maybe I should keep an inventory of my socks to avoid this problem!

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Tashia

4 days ago

I agree with you, Sheldon. I believe it will lead to a decrease in the inventory figure in the statement of financial position.

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Sheldon

10 days ago

I think if the closing inventory figure is decreased, it will affect the financial statements.

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