CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 84 Discussion

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

Question #: 84
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 Izetta at Apr 10, 2024, 04:34 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jacob

2 days ago

I think the limitations of financial statement figures for ratio analysis are that they only provide historic data and financial information.

upvoted 0 times

...

Celestine

24 days ago

I'm with Dominic on option B. Financial statements are purely financial data, which limits the insights we can gain from ratio analysis. We need other types of information as well.

upvoted 0 times

...

Danica

26 days ago

Haha, option F made me chuckle. Financial statements definitely don't provide forecast data, that's the job of the analysts! But I agree, A, C, and D are the clear limitations here.

upvoted 0 times

...

Tambra

27 days ago

I think option E is also a valid limitation. Financial statements can contain a lot of detailed information that needs to be summarized and analyzed before it's really useful for ratio analysis.

upvoted 0 times

...

Dominic

28 days ago

Hmm, I'm pretty sure option B is also a limitation. Financial statements only provide financial information, not operational or other non-financial data that could be useful for analysis.

upvoted 0 times

...

I agree with Denise. Options A, C, and D seem clear, but I'm not convinced that B, E, and F are actual limitations. Financial statements do provide financial information, and I wouldn't say the information is complicated or only provides forecasts.

upvoted 0 times

...

Denise

1 months ago

This question really tests our understanding of the limitations of financial statements for ratio analysis. I think options A, C, and D are definitely true, but I'm not sure about the others.

upvoted 0 times

...

CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 84 Discussion

Contribute your Thoughts:

Jacob

Celestine

Danica

Tambra

Dominic

Jose

Denise