CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 78 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 78
Topic #: 1

AB's financial information shows that thenon current assets' carrying value is greater than the tax base at the year end.

What is the journal entry to record the movement in the provision for deferred tax resulting from this difference?

ADr Deferred tax provisionCr Tax expense

BDr Deferred tax provisionCr Other comprehensive income

CDr Tax expenseCr Deferred tax provision

DDr Other comprehensive incomeCr Deferred tax provision

Show Suggested Answer

Suggested Answer: A, B, C

by Tasia at Dec 08, 2023, 10:12 PM

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11 days ago

A deferred tax provision is the way to go for this situation. Gotta love those accounting quirks, right?

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15 days ago

I'm not sure, but I think the journal entry should be D.

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22 days ago

I disagree, I believe the correct answer is C.

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25 days ago

I think the answer is A.

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