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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Sabina

1 months ago

Ah, the joys of deferred tax provisions. It's like a tax-themed treasure hunt, but with more paperwork.

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Rosio

20 days ago

A) Dr Deferred tax provisionCr Tax expense

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Walker

1 months ago

Option A makes the most sense to me. I mean, who doesn't love a good deferred tax provision entry?

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Elli

3 days ago

User 3: I think option A is the most straightforward way to handle the situation with non current assets' carrying value being greater than the tax base.

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Wilson

5 days ago

User 2: Yeah, it makes sense to debit the deferred tax provision and credit tax expense for that difference.

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Socorro

7 days ago

User 1: I agree, option A seems like the right choice for recording the movement in the provision for deferred tax.

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Rachael

2 months ago

I'm not an accountant, but I'm pretty sure option A is the way to handle this. Unless, of course, you're a wizard with the tax code.

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Larae

5 days ago

User 3: Yeah, option A makes sense for recording the movement in the provision for deferred tax.

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Lawanda

17 days ago

User 2: I agree, it seems like the most logical choice.

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Felix

28 days ago

User 1: I think option A is the correct journal entry.

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Emmanuel

2 months ago

Hmm, I think option A is the correct answer. Can't forget that deferred tax provision is the way to record this movement.

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Lelia

8 days ago

User 3: Dr Deferred tax provision, Cr Tax expense. That's the journal entry we need.

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Arlette

12 days ago

User 2: Yes, recording it as a deferred tax provision makes sense.

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Leoma

16 days ago

User 1: I agree, option A seems to be the right choice.

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Ashlee

2 months ago

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

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Edda

27 days ago

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

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Rhea

28 days ago

A) Dr Deferred tax provisionCr Tax expense

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Gregg

1 months ago

C) Dr Tax expenseCr Deferred tax provision

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Elliot

1 months ago

A deferred tax provision is necessary to account for the difference in carrying value and tax base of non-current assets.

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Dortha

1 months ago

A) Dr Deferred tax provisionCr Tax expense

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Roosevelt

2 months ago

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

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Daryl

3 months ago

I disagree, I believe the correct answer is C.

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Patrick

3 months ago

I think the answer is A.

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