CIMA Exam CIMAPRA17-BA3-1 Topic 4 Question 100 Discussion

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

Question #: 100
Topic #: 4

What will be the effect on the financial statements if the closing inventory figure is decreased?

AAn increase in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

BA decrease in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

CA decrease in cost of sales, an increase in gross profit and a decrease in the inventory figure in the statement of financial position.

DAn increase in cost of sales, a decrease in gross profit and a decrease in the inventory figure in the statement of financial position.

Show Suggested Answer

Suggested Answer: A

by Cherelle at Sep 19, 2024, 12:44 PM

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Venita

1 days ago

Okay, I've got this. If the closing inventory goes down, that means the cost of sales goes up, and the gross profit goes down. That's just basic accounting, right? I'll go with option D.

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Barney

13 days ago

I think option D is correct. It will result in an increase in cost of sales and a decrease in gross profit.

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Hmm, let's see. If the closing inventory figure decreases, that means the cost of goods sold will increase, right? So, I think the answer is D. Hey, maybe I should keep an inventory of my socks to avoid this problem!

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Maryanne

2 days ago

User 1: I think you're right, if the closing inventory figure decreases, the cost of sales will increase.

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Tashia

18 days ago

I agree with you, Sheldon. I believe it will lead to a decrease in the inventory figure in the statement of financial position.

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Sheldon

24 days ago

I think if the closing inventory figure is decreased, it will affect the financial statements.

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CIMA Exam CIMAPRA17-BA3-1 Topic 4 Question 100 Discussion

Contribute your Thoughts:

Venita

Barney

Britt

Maryanne

Tashia

Sheldon