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: Oct 28, 2025

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Question 1

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 2

RS has issued an instrument with a nominal value of $1 million, at a discount of 2.5%, and a coupon rate of 6%. The terms of the issue are that the instrument must eitherbe redeemed at par, at the option of the holder, in three years' time, or alternativelyconverted into equity shares in RS.

The characteristics of this instrument taken as a whole indicates that it would be classifed as which of the following?

A : mpound instrument

B : Debt instrument

C : uity instrument

D : counted instrument

Answer: A

Question 3

What is the total comprehensive incomeattributable to the shareholders of GHI that will be presented in GHI's consolidated statement of changes in equity for the year ended 31 December 20X4?

A : $2,780,000

B : $2,880,000

C : $2,875,000

D : $3,260,000

Answer: A

Question 4

The dividend yield of ST hasfallen in theyear to 31 May 20X5, compared to the previous year.

The share price on 31 May 20X4 was $4.50 and on 31 May 20X5 was $4.00. There were no issues of share capital during the year.

Whichof the following should explain the reduction in the dividend yield for the year to 31 May 20X5 compared to the previous year?

A : dividend paid in the year was reduced in order to pay for new assets.

B : rplus cash was used to pay a special dividend in additionto the normal dividend in the year.

C : The profit for the year fell significantly and the dividend per share stayed the same.

D : compensate investors for thereduction in share price a higher dividend per share was paid.

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: Oct 28, 2025

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