CIMA CIMAPRA19-F02-1-ENG F2 Advanced Financial Reporting (Online) Online Training
CIMA CIMAPRA19-F02-1-ENG Online Training
The questions for CIMAPRA19-F02-1-ENG were last updated at Nov 26,2024.
- Exam Code: CIMAPRA19-F02-1-ENG
- Exam Name: F2 Advanced Financial Reporting (Online)
- Certification Provider: CIMA
- Latest update: Nov 26,2024
CORRECT TEXT
Information extracted from JK’s statement of financial position for the year ended 31 May 20X5 is as follows:
Calculate the gearing ratio (Debt/Equity measured as a percentage) at 31 May 20X5.
Give your answer to one decimal place.
? %
An accountant acting under their Code of Ethics would do which THREE of the following?
- A . Resist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.
- B . Report material conflicts of interest to a more senior level.
- C . Reject a justified change to a depreciation policy that increases profitability.
- D . Accept a recommendation from the audit committee to increase segregation of duties within the finance department.
- E . Make a provision for a liability of uncertain timing or amount, requested by the directors, where there is NOT a present obligation.
- F . Accept a director’s instruction to remove one element of their remuneration from the directors’ remuneration report.
What is meant by the term "a placing of ordinary shares"?
- A . Selling new ordinary shares to a financial institution on a pre-arranged basis.
- B . Selling new ordinary shares directly to the public.
- C . Selling existing ordinary shares to new investors through a stock exchange.
- D . Selling new ordinary shares to existing shareholders.
CORRECT TEXT
F has profit before interest and tax of $400,000 for the year to 30 June 20X4.
Extracts from F’s statement of financial position at 30 June 20X4 are as follows:
Calculate the gearing (debt:equity) ratio at 30 June 20X4.
Give your answer to the nearest whole percentage.
? %
The directors of AB want to reduce the entity’s gearing ratio in the year to 31 December 20X9.
Which of the following independent actions could the directors take during 20X9 to achieve this?
- A . Recognise the valuation surplus on AB’s property, plant and equipment.
- B . Issue cumulative preference shares.
- C . Issue redeemable preference shares.
- D . Switch AB’s fixed interest bearing borrowing to a lower variable rate borrowing.
Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:
At 30 April 20X9 the ordinary shares are trading at $4.75.
What is the price earnings (P/E) ratio for RST at 30 April 20X9?
- A . 15.83
- B . 7.92
- C . 10.56
- D . 9.31
Information from the financial statements of an entity for the year to 31 December 20X5:
The gearing ratio calculated as debt/equity and interest cover are:
- A . gearing of 15% and interest cover of 6.
- B . gearing of 16% and interest cover of 6.
- C . gearing of 15% and interest cover of 4.
- D . gearing of 16% and interest cover of 4.
LM is preparing its consolidated financial statements for the year ended 30 April 20X5. During the year LM acquired 30% of the equity shares of AB giving it significant influence over AB.
LM conducted ratio analysis comparing the financial performance of the group for 30 April 20X4 and 20X5.
Which of the following ratios would not be comparable as a result of the acquisition of AB?
- A . Operating profit margin.
- B . Return on capital employed.
- C . Earnings per share.
- D . Interest cover.
Which TWO of the following are TRUE in respect of preparing a consolidated statement of cash flows where there has been an acquisition of a subsidiary part way through the year?
- A . Investing activities will include a total cash outflow for the acquisition comprising the cash paid for the subsidiary less the cash held by the subsidiary at the acquisition date.
- B . The working capital held by the subsidiary at acquisition will be excluded from the year end figures based on the percentage shareholding in the subsidiary.
- C . Non-controlling interest will arise in relation to the subsidiary and any dividends paid to the non-controlling interest will be shown within financing activities as a cash outflow.
- D . Any shares that were issued on acquisition of the subsidiary will be shown separately on the statement of cash flows within financing activities.
- E . The year end cash and cash equivalents balance will be reduced by the cash and cash equivalents that were held by the subsidiary at the acquisition date.
CORRECT TEXT
ST acquired 80% of the equity shares of AB on 1 January 20X7. AB acquired 60% of the equity shares of UV on 1 January 20X8. Profit for the year ended 31 December 20X9 for AB is $160,000 and for UV is $100,000.
Calculate the non-controlling interest figure to be included within ST’s consolidated statement of profit or loss for the year ended 31 December 20X9.
Give your answer to the nearest whole number in $000s.
$ ?
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