CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 93 Discussion

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

Question #: 93
Topic #: 1

Which of the following would meet the definition of a liability in accordance with the Conceptual Framework's definition?

AAn amount due from a customer for goods dispatched two weeks ago

BAn amount due to a supplier for goods to be purchased in one month's time

CAn amount which was paid to a supplier in relation to a dispute

DAn amount due to a supplier for goods purchased one month ago

Show Suggested Answer

Suggested Answer: B

by Janae at Jul 18, 2024, 08:09 PM

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Gregg

4 months ago

Hah, I bet the exam writers were trying to trick us with that one! C is clearly not a liability since it's a past dispute settlement, not a current obligation.

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Emerson

2 months ago

Yeah, they were definitely trying to throw us off with option C. Good catch!

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Karl

3 months ago

D) An amount due to a supplier for goods purchased one month ago

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Abel

3 months ago

B) An amount due to a supplier for goods to be purchased in one month's time

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Celestine

3 months ago

A) An amount due from a customer for goods dispatched two weeks ago

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Bernadine

4 months ago

I'm going with B on this one. Even though the goods haven't been received yet, the company still has a future obligation to the supplier, which qualifies as a liability.

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