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CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 87 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 87
Topic #: 1
[All CIMAPRA17-BA3-1 Questions]

In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.

Which of the following is the impact of adjusting for this event?

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Suggested Answer: D

by Estrella at May 08, 2024, 04:09 PM

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Larae
10 months ago
Makes sense. So, decrease in receivables and decrease in profits?
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Rosina
10 months ago
Receivables decrease since the customer can't pay, and profits would decrease too, right?
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Rhea
11 months ago
Why D, Carol?
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Rosina
11 months ago
B? I was thinking it might be D.
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Larae
12 months ago
Yeah, but I'm leaning towards B.
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Rhea
12 months ago
This question's a bit tricky, right?
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