CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 71 Discussion

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

Question #: 71
Topic #: 1

A company's financial statements show a gross profit of $15 million. A major error in the inventory value system has been discovered resulting in an overstatement on opening inventory of $1.2 million and an understatement in closing inventory of $1.5 million.

What is the correct gross profit figure for the period?

A$17.7 million

B$15.3 million

C$14.7 million

D$12.3 million

Show Suggested Answer

Suggested Answer: B

by Cory at Jul 05, 2023, 04:15 AM

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Laurel

28 days ago

I heard the company's inventory was so messed up, they had to hire a professional 'lost and found' expert to find all the missing items. Guess they should have invested in a better inventory system, huh?

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Rebecka

19 days ago

A) $17.7 million

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Iraida

30 days ago

Ah, the joys of financial accounting. I'm going with D) $12.3 million - let's hope I'm not cooking the books like the company in the question!

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Elena

1 months ago

Inventory - the bane of every accountant's existence! I'm feeling confident about A) $17.7 million, but I'll run the numbers one more time just to be safe.

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Willard

5 days ago

I think it's A) $17.7 million too. Let's double check.

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Von

1 months ago

Hmm, gotta love those inventory discrepancies. I'm leaning towards C) $14.7 million, but I'll double-check my work just to be sure.

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Charlene

20 hours ago

User 3: Let's double-check our calculations just to be safe.

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Coral

5 days ago

User 2: I agree, it seems like the most logical choice.

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Providencia

19 days ago

User 1: I think the correct gross profit figure is $14.7 million.

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Jodi

1 months ago

Wow, talk about a major inventory issue! I'm going with B) $15.3 million - that seems to be the correct answer after accounting for the overstatement and understatement.

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