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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Hana

8 days ago

But the error in the inventory value system would affect the gross profit, so it should be $14.7 million.

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Tasia

9 days ago

I disagree, I believe it is $15.3 million.

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Hana

11 days ago

I think the correct gross profit figure is $17.7 million.

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Callie

17 days ago

I agree with Reuben, the correct gross profit figure should be $17.7 million after adjusting for the inventory errors.

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Reuben

18 days ago

I disagree, I believe it should be $17.7 million because we need to adjust for the inventory errors.

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Shantell

25 days ago

I think the correct gross profit figure is $15.3 million.

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