CIMA Exam CIMAPRA19-F02-1 Topic 4 Question 96 Discussion

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

Question #: 96
Topic #: 4

[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 Shannan at Sep 10, 2024, 11:52 PM

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Alexis

2 months ago

I see your point, Paola. It's important to consider the limitations when using financial statement figures for ratio analysis.

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Ceola

2 months ago

I'm just glad I don't have to analyze these financial statements. The numbers give me a headache just looking at them!

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Gertude

2 months ago

Haha, F is a good one! Financial statements only provide forecast data, not actual data. Really helpful for ratio analysis, right?

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Paola

3 months ago

I think D is also a limitation because financial statements provide only summarised information.

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Kathrine

3 months ago

B and E are also good options. Financial statements only provide financial information and the information can be complicated, needing to be summarized.

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Kanisha

2 months ago

D) Provide only summarised information

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Hyun

2 months ago

E) Contains complicated information that needs to be summarised

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Xuan

2 months ago

C) Limited information to identify trends over time

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Tracey

2 months ago

D) Provide only summarised information

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Vallie

2 months ago

A) Only provides historic data

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Maile

2 months ago

C) Limited information to identify trends over time

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Justine

2 months ago

A) Only provides historic data

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Felicidad

3 months ago

I agree with Agustin. Financial statement figures can be limited in that way.

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Agustin

3 months ago

A and C are limitations because they only provide historic data and limited information to identify trends over time.

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Marva

3 months ago

I think the correct answers are A, C, and D. Financial statements only provide historic data, limited information to identify trends, and summarized information.

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Veronika

3 months ago

That's correct, financial statements do have limitations in terms of providing historic data, limited trend identification, and summarized information.

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Veronika

3 months ago

I agree, financial statements only provide historic data, limited information to identify trends, and summarized information.

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