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
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA17-BA3-1 Topic 4 Question 103 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 103
Topic #: 4
[All CIMAPRA17-BA3-1 Questions]

Which of the following is the correct double entry for a prepayment?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Kasandra at Nov 19, 2024, 01:40 AM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel
Tammara
3 months ago
C) Debit prepayment (current asset) Credit expense. It's like a secret accounting handshake, you know?
upvoted 0 times
...
Lorita
3 months ago
Prepare to be amazed, folks! The answer is C. Prepayments are current assets, not liabilities. Simple as that.
upvoted 0 times
Adolph
2 months ago
Prepare to be amazed, folks! The answer is C. Prepayments are current assets, not liabilities. Simple as that.
upvoted 0 times
...
Selma
2 months ago
D) Debit expense Credit prepayment (current liability)
upvoted 0 times
...
Catarina
2 months ago
Prepare to be amazed, folks! The answer is C. Prepayments are current assets, not liabilities. Simple as that.
upvoted 0 times
...
Phuong
2 months ago
D) Debit expense Credit prepayment (current liability)
upvoted 0 times
...
Edelmira
2 months ago
C) Debit prepayment (current asset) Credit expense
upvoted 0 times
...
Yuriko
2 months ago
B) Debit prepayment (current liability) Credit expense
upvoted 0 times
...
Kanisha
2 months ago
A) Debit expense Credit prepayment (current asset)
upvoted 0 times
...
Gail
2 months ago
C) Debit prepayment (current asset) Credit expense
upvoted 0 times
...
Lang
2 months ago
B) Debit prepayment (current liability) Credit expense
upvoted 0 times
...
Ling
3 months ago
A) Debit expense Credit prepayment (current asset)
upvoted 0 times
...
...
Ressie
4 months ago
Hmm, this one's tricky. Let me think... Ah, got it! C is the way to go. Prepayments are assets, not liabilities.
upvoted 0 times
...
Novella
4 months ago
Hmm, I see your point. But I still think option C is the correct one.
upvoted 0 times
...
Lillian
4 months ago
I disagree, I believe it should be Debit expense Credit prepayment (current liability).
upvoted 0 times
...
Cletus
4 months ago
Definitely C. Prepayments are assets, not liabilities. Someone needs a refresher on their accounting basics.
upvoted 0 times
Ocie
2 months ago
Definitely not A or D, those entries are incorrect for a prepayment.
upvoted 0 times
...
Caprice
2 months ago
Yeah, prepayments should be debited to a current asset account and credited to an expense account.
upvoted 0 times
...
Sabra
2 months ago
I agree, C is the correct double entry for a prepayment.
upvoted 0 times
...
Alethea
3 months ago
I think it's C. Prepayments are assets, not liabilities.
upvoted 0 times
...
...
Novella
4 months ago
I think the correct double entry for a prepayment is Debit prepayment (current asset) Credit expense.
upvoted 0 times
...
Broderick
4 months ago
C) Debit prepayment (current asset) Credit expense. Gotta love those prepayments!
upvoted 0 times
Renea
3 months ago
C) Debit prepayment (current asset) Credit expense
upvoted 0 times
...
Evelynn
3 months ago
B) Debit prepayment (current liability) Credit expense
upvoted 0 times
...
Danica
3 months ago
A) Debit expense Credit prepayment (current asset)
upvoted 0 times
...
...

Save Cancel