CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 84 Discussion

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

Question #: 84
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

A decrease in the allowances for receivables would result in:

AAn increase in working capital

BA decrease in working capital

CAn increase in liabilities

DA decrease in net profit

Show Suggested Answer

Suggested Answer: B

by Kanisha at Apr 10, 2024, 09:37 PM

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Jonell

1 days ago

D) A decrease in net profit makes the most sense to me. Lowering the allowances for receivables is like being more optimistic about collecting on those accounts, which would boost the bottom line.

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Hmm, I'm not so sure. Wouldn't a decrease in the allowances for receivables lead to a decrease in working capital since there would be less cash available? I'll have to think about this one a bit more.

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Sommer

13 days ago

I think it would actually lead to a decrease in net profit.

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Hector

15 days ago

I disagree, I believe it would result in an increase in liabilities.

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Corazon

15 days ago

I think a decrease in allowances for receivables would result in a decrease in working capital.

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Apolonia

17 days ago

I think the correct answer is D) A decrease in net profit. A decrease in the allowances for receivables would mean the company is recognizing more revenue, which would lead to an increase in net profit.

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Glen

3 days ago

I think the correct answer is D) A decrease in net profit.

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CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 84 Discussion

Contribute your Thoughts:

Jonell

Luther

Sommer

Hector

Corazon

Apolonia

Glen