CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 89 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 89
Topic #: 1

[All CIMAPRA19-F02-1 Questions]

Which of the following are limitations of financial statement figures for ratio analysis? Select the ALL that apply.

AOnly provides historic data

BOnly provides financial information

CLimited information to identify trends over time

DProvide only summarised information

EContains complicated information that needs to be summarised

FOnly provides forecast data

Show Suggested Answer

Suggested Answer: A, B, C, D

by Eura at May 31, 2024, 01:36 PM

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Blair

6 months ago

This question is a piece of cake! A, C, and D are the correct answers. Though I have to say, option F made me chuckle. Who needs forecast data when we have the past to haunt us?

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Francine

5 months ago

Haha, yeah, who needs forecast data when we have the past to haunt us!

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Jovita

5 months ago

I agree, A, C, and D are definitely limitations of financial statement figures for ratio analysis.

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Lauran

6 months ago

Hmm, I'm not sure about option B. Financial statements do provide financial information, which is the core of ratio analysis. But the other options seem spot on.

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Yolando

5 months ago

D) Provide only summarised information

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Corrina

5 months ago

C) Limited information to identify trends over time

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Queenie

5 months ago

A) Only provides historic data

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Virgie

6 months ago

I agree with Krystal. Financial statements only give historical data and summarized information, making it hard to identify trends.

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Delbert

6 months ago

I agree with Belen, but I would also add option E. The complicated information in financial statements needs to be summarized, which can limit the level of detail.

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Krystal

6 months ago

I think A, C, D, and E are limitations.

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Belen

6 months ago

Options A, C, and D seem to be the most relevant limitations. Financial statements only provide historical data, limited information to identify trends, and summarized information.

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