CIMA Exam CIMAPRA17-BA3-1 Topic 3 Question 109 Discussion

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

Question #: 109
Topic #: 3

On 1 March, a company made a payment of $6,000, in respect of rent for the quarter 1 March - 31 May. The company's year end was 31 March.

What will be the amount of the prepayment shown in the accounts at the year end?

A$2,000

B$4,000

C$6,000

DNil

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Suggested Answer: A

by Natalie at Mar 22, 2025, 07:42 PM

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Lashandra

2 days ago

Hmm, I think the correct answer is B) $4,000. The company made a payment of $6,000 for the quarter, but since the year-end is 31 March, only two-thirds of the payment will be prepaid.

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Gary

14 days ago

But the rent was only for two out of the three months, so it should be $4,000 as a prepayment.

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Lorenza

21 days ago

I disagree, I believe the answer is B) $4,000.

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Gary

22 days ago

I think the answer is A) $2,000.

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