Free CIMA CIMAPRA19-F02-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA19-F02-1-ENG exam questions and correct answers

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Total 270 Questions | Updated On: Jun 16, 2026

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Question 1

XY's investments enable it to exercisecontrol over AB and havesignificant influence over FG and JK.

The Managing Director of XY is a non-executive director of LM. XYdoes not hold any investment inLM.

XYispreparingitsconsolidated financial statements for the year ended 30 September 20X9.

Which of the followingtransactions during the year will be disclosed in these financial statements in accordance with IAS 24 Related Party Disclosures?

A : le of goods with a trade discount to a major customer of XY.

B : le of a motor vehicle from XY toa Director of AB'sspouse at its current market value.

C : le of non current assets from XY to LM at their current market value.

D : Sale of goods from FG to JK at their current market value.

Answer: B

Question 2

AB and FGincorporated on 1 January 20X1 in the same country and had similar investment in net assets. Both entities are financed entirely by equity. In the year to31 December 20X1 both entitiesgenerated the same volume of sales.

Which of the following, takenindividually, would explainwhy AB's return on capital employed ratio was lower than that of FG?

A : revalued its non current assets upwards on 31 December 20X1; FG's non current assets were stated at historic cost.

B : issuedbonds on 31 December 20X1; AB remains ungeared.

C : paid a lower dividend to its shareholders than FG in the year.

D : 's deferred tax provision at the year end ishigher than that of FG.

Answer: A

Question 3

The tax benefit on a company's asset is 180,000 and the useful life on that asset is five years. The company creates a deferred tax provision to spread this benefit over the asset's useful life.

What entry is needed to reduce this deferred tax provision in the company's year two accounts?

A : Deferred tax liability (SOFP) 36,000

B : Deferred tax liability (SOFP) 36,000

C : Corporation tax (income statement) 36,000

D : Deferred tax liability (SOFP) 144,000

E : Corporation tax (income statement) 144,000

Answer: A

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

JKL measure gearingas debt:equity, based on book values.At 31 December 20X5the ratio is 2:3 and JKL would like this to be 2:5.

Which of the following transactions individually would achieve this?

A : nus issue from the share premium account.

B : valuationof investment propertyto an increased fair value.

C : payment of a6 year termloan with the issue of 5 year redeemable debentures.

D : ue of redeemable preference shares at par.

Answer: B

Page: 1 / 54

Total 270 Questions | Updated On: Jun 16, 2026

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