CIMA Exam CIMAPRA19-F01-1 Topic 3 Question 86 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 86
Topic #: 3

The following information relates to AA.

Extract of Trial Balance at 31 December 20X4;

Notes

(i) Inventory at 31 December 20X4 was valued at cost at $30.

(ii) The loan which was received on 1 July 20X4 is repayable in 20X9.

(iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3. AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is expected amounting to $20.

(iv) Cost of sales, administration and distribution costs need to be adjusted for the following:

What figures should be entered on the face of the Statement of profit or Loss for the year ended 31 December 20X4 in relation to Interest and Corporate income tax?

AInterest $25 Corporate income tax $(37)

BInterest $25 Corporate income tax $37

CInterest $50 Corporate income tax $(3)

DInterest $50 Corporate income tax $3

Show Suggested Answer

Suggested Answer: A

by Arlen at May 02, 2024, 04:35 PM

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7 months ago

Did you see that question on AA's trial balance and statement of profit or loss?

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