Free Practice CIMA CIMAPRA19-F02-1-ENG Exam Questions 2025

Stay ahead with 100% Free F2 Advanced Financial Reporting (Online) CIMAPRA19-F02-1-ENG Dumps Practice Questions

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Total 270 Questions | Updated On: Apr 09, 2025

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Question 1

Ratios have been produced below for EF for the year to 31 March:

Which TWO of the following could explain themovement in both gearing and ROCE?

A : A rights issue on 31 March 20X3.

B : A debt issue on 31 March 20X3.

C : A revaluation upwards on the head office property on 1 April 20X2.

D : A bonus issue of shares on 1 April 20X2.

E : A bank loan to purchase new machinery on 31 March 20X3.

Answer: A,C

Question 2

AB owned 80% of the equity share capital of FG at 1 January 20X6. AB disposed of 10% of FG's equity share capital on 31 December 20X6 for $400,000. The non controlling interest was measured at $700,000 immediately prior to the disposal.

Which of the following represents the adjustment that AB made to non controlling interest in respect of the disposal when it prepared its consolidated financial statements at 31 December 20X6?

A : Credit of $350,000

B : Debit of $400,000

C : Debit of $350,000

D : Credit of $50,000

Answer: A

Question 3

MNO is listed on its local stock exchange. It has a high level of gearing compared to the industry average as a result of rapid expansion funded by debt. The directors of MNO would like to reduce the level of gearing by raising equity to fund the next expansion project. The directors are considering whether to use a placing of new shares or a rights issue.

Which of the following statementsis true?

A : A rights issue would not need to be underwritten because the risk of the shares not being taken up is small compared to a placing.

B : The administration costs associated with a placing are usually more expensive than a rights issue because less investors are involved.

C : A placing will increase the proportion of the total number of MNO's shares held by large investors.

D : The directors must use a placing before offering the rights issue to existing shareholders.

Answer: C

Question 4

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

Answer: A

Question 5

When consolidating for group accounts, a number of calculations and adjustments are required to properly combine the entities into a single group. Which of the following processes are involved in this consolidation method?

Select ALL that apply:

A : Add together the assets and liabilities of parent and subsidiary

B : Adjust for investment in subsidiaries

C : Adjustment for equity

D : Adjustment for profits

E : Adjustment for depreciation and amortisation

Answer: A,B,C

Page: 1 / 54

Total 270 Questions | Updated On: Apr 09, 2025

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