CIMAPRA19-F02-1-ENG Practice Online

Question 1

If you were asked to express the overall performance of an entityas a percentage of its total investment in net assets which of the following ratios would you calculate?

A : Return on capital employed

B : Asset utilisation

C : Dividend yield

D : Non-current asset turnover

Answer: A

Question 2

Which of the following best describes the goal of WACC as a measure?

A : To work out the average return that is required by the company on its investments in order to satisfy all shareholders and debt holders.

B : To work out the average return that is required by the company on its investments in order to satisfy all shareholders.

C : To work out the average return that is required by the company on its investments in order to satisfy all debt holders.

D : To work out the minimum return that is required by the company on its investments in order to satisfy all shareholders and debt holders.

Answer: A

Question 3

XY's investments enable it to exercisecontrol over AB and havesignificant influence over FG and JK.

The Managing Director of XY is a non-executive director of LM. XYdoes not hold any investment inLM.

XYispreparingitsconsolidated financial statements for the year ended 30 September 20X9.

Which of the followingtransactions during the year will be disclosed in these financial statements in accordance with IAS 24 Related Party Disclosures?

A : Sale of goods with a trade discount to a major customer of XY.

B : Sale of a motor vehicle from XY toa Director of AB'sspouse at its current market value.

C : Sale of non current assets from XY to LM at their current market value.

D :

Sale of goods from FG to JK at their current market value.

Answer: B

Question 4

When accounting for a finance lease under IAS 17 Leases, which TWO of the following are recognised in the statement of profitor loss?

A : Finance cost element of the lease payments

B : Depreciationof the leased asset

C : Lease payments paid

D :

Lease payments payable

E : Capital repayment element of the lease payments

Answer: A,B

Question 5

The dividend yield of ST hasfallen in theyear to 31 May 20X5, compared to the previous year.

The share price on 31 May 20X4 was $4.50 and on 31 May 20X5 was $4.00. There were no issues of share capital during the year.

Whichof the following should explain the reduction in the dividend yield for the year to 31 May 20X5 compared to the previous year?

A : The dividend paid in the year was reduced in order to pay for new assets.

B : Surplus cash was used to pay a special dividend in additionto the normal dividend in the year.

C :

The profit for the year fell significantly and the dividend per share stayed the same.

D : To compensate investors for thereduction in share price a higher dividend per share was paid.

Answer: A

Name:	F2 Advanced Financial Reporting (Online)
Exam Code:	CIMAPRA19-F02-1-ENG
Certification:	CIMA Professional Qualification
Vendor:	CIMA
Total Questions:	270
Last Updated:	May 13, 2024

Download Demo CIMAPRA19-F02-1-ENG Dumps

Create Account

Password Recovery

CIMAPRA19-F02-1-ENG Practice Online

Download Demo CIMAPRA19-F02-1-ENG Dumps

Member Login

Create Account

Password Recovery

CIMAPRA19-F02-1-ENG Practice Online