CIMA Exam CIMAPRA19-F01-1 Topic 4 Question 84 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 84
Topic #: 4

The following information is extracted from OO's statement of financial position at 31 March:

Included in other payables is interest payable of $80,000 at 31 March 20X2 and $73,000 at 31 March 20X1.

The following information if included within OO's statement of profit or loss for the year ended 31 March 20X2:

Included within finance cost is $124,000 which relates to interest paid on a finance lease. 00 includes finance lease interest within financing activities on its statement of cash flows.________________

Within OO's statement of cash flow for the year ended 31 March 20X2 which figures should be included to reflect the changes in working capital within the net cash flow from operating activities?

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: C

by Chau at Apr 13, 2024, 02:58 PM

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Cora

5 months ago

I'm leaning towards Option C actually. It could also be a valid choice considering the context of the question.

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Stevie

5 months ago

I believe Option D is the correct answer. It seems to be the most logical choice based on the information provided.

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Armando

5 months ago

I agree with Including changes in working capital in net cash flow from operating activities is essential for accurate financial reporting.

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Cora

5 months ago

I think the figures related to changes in working capital should be included in the net cash flow from operating activities.

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Lou

5 months ago

I see your point, but I still think Option D is the best choice considering the overall financial position of OO.

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Deane

6 months ago

I disagree, I think Option C is more appropriate based on the information provided.

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Leeann

6 months ago

I would choose Option B as the figure to be included in the statement of cash flow to reflect the changes in working capital.

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Lou

6 months ago

I believe we should focus on the changes in working capital to calculate the net cash flow from operating activities.

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Deane

6 months ago

Yes, I agree. It's important to understand the components of other payables and finance costs.

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Leeann

6 months ago

I think we need to analyze the figures provided in the statement of financial position.

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Jettie

7 months ago

Ooh, I've got a good feeling about this one! *winks* Just kidding, but seriously, I think we're on the right track. Let's keep discussing and see if we can figure it out.

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Maryln

7 months ago

Alright, let's break this down step-by-step. What do we know about the interest payable and the finance lease interest? I feel like that's the key to solving this.

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Minna

5 months ago

So, the key to solving this is understanding how interest payable and finance lease interest impact the cash flow statement.

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Adelina

6 months ago

Finance lease interest is included in financing activities on the statement of cash flows.

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Dorthy

6 months ago

Finance cost includes $124,000 for interest paid on a finance lease.

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Minna

6 months ago

Interest payable was $80,000 at 31 March 20X2 and $73,000 at 31 March 20X1.

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Xuan

7 months ago

I think Option B looks promising, but I'm not completely confident. The question mentions that the interest on the finance lease is included in financing activities, so that might be a clue.

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Cary

7 months ago

Hmm, I'm not too sure about this one. I feel like I need to go back and review the concepts of cash flow statements and working capital. Anyone have any tips?

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Laurel

7 months ago

I agree, this is a tricky one. We need to look at the information provided and figure out how the interest expense on the finance lease should be treated.

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Art

7 months ago

This question is really testing our understanding of cash flow statements and the treatment of interest expense. I think the key is to determine which changes in working capital items should be included in the net cash flow from operating activities.

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