CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 86 Discussion

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

Question #: 86
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

Mr UY has just had property P re-valued. Mr UY originally purchased property P for 560,000. It is now worth 780,000.

Which ONE of the following shows how this transaction should be recorded in Mr UY's property account?

A220,000 credit

B220,000 debit

C780,000 debit

D780,000 credit

Show Suggested Answer

Suggested Answer: A

by Tamala at May 02, 2024, 03:53 PM

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Shenika

1 months ago

Option B is the correct answer. The increase in value is recorded as a debit to the property account.

upvoted 0 times

Kris

6 days ago

Option B is the correct answer. The increase in value is recorded as a debit to the property account.

upvoted 0 times

...

Hannah

10 days ago

B) 220,000 debit

upvoted 0 times

...

Ariel

16 days ago

A) 220,000 credit

upvoted 0 times

...

Johnetta

1 months ago

Haha, I bet Mr. UY is feeling pretty good about that 220,000 gain! Time to splurge on a new sports car, am I right?

upvoted 0 times

Latosha

3 days ago

B) 220,000 debit

upvoted 0 times

...

Brittni

15 days ago

A) 220,000 credit

upvoted 0 times

...

Mayra

1 months ago

I'm not sure about this one. Shouldn't it be a credit since the property value has increased?

upvoted 0 times

Kattie

10 days ago

D) 780,000 credit

upvoted 0 times

...

Jacqueline

12 days ago

Yes, you are correct. The increase in property value should be recorded as a credit.

upvoted 0 times

...

Alberta

17 days ago

A) 220,000 credit

upvoted 0 times

...

Tammy

2 months ago

Option B looks right to me. We're increasing the value of the property, so it's a debit to the account.

upvoted 0 times

Amalia

10 days ago

Option B looks right to me. We're increasing the value of the property, so it's a debit to the account.

upvoted 0 times

...

Chery

25 days ago

B) 220,000 debit

upvoted 0 times

...

Jettie

1 months ago

A) 220,000 credit

upvoted 0 times

...

Jutta

2 months ago

But wouldn't the increase in property value be recorded as a credit in the account?

upvoted 0 times

...

Jamal

3 months ago

I disagree, I believe the correct answer is D) 780,000 credit.

upvoted 0 times

...

Jutta

3 months ago

I think the answer is B) 220,000 debit.

upvoted 0 times

...