Free CIMA CIMAPRA19-F03-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA19-F03-1-ENG exam questions and correct answers

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Total 305 Questions | Updated On: Apr 28, 2026

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Question 1

TU has relatively few tangible assets and is dependent for profits and growth on the high-value individuals it employs. Which of the following statements best explains why the net asset valuator method’s considered unstable for TU?

A : does not account for its tangible assets

B : does not account for its intangible assets.

C : accounts for its intangible assets at net realisable value.

D : accounts for its intangible assets at historical value.

Answer: B

Question 2

A company gas a large cash balance but its directors have been unable to identify any positive NPV projects to invest in. Which THREE of the following are advantages of a share repurchase, compared with a one-off large dividend?

A : shareholder can choose whether to take the cast or not.

B : increases the number of shares issue.

C : means that the company will be able to pay lower total dividends in the future.

D : returns cash to shareholders so that they can choose hew to spend It

E : will not create an expectation for future increased dividends.

Answer: A,D

Question 3

When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to

the P/E ratio may be necessary.

Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use?

A : relative lack of marketability of unlisted company shares.

B : lower level of scrutiny and regulation for unlisted companies.

C : listed companies being generally smaller and less established.

D : ntrol premium not being included within the proxy p/e ratio used.

E : forecast earnings growth being relatively higher in the unlisted company.

F : profit item within the unlisted company's latest earnings which will not reoccur.

Answer: A,B,C

Question 4

Which THREE of the following would be most important if a hospital wishes to review the effectiveness of its services?

A : proportion of surgical procedures that are deemed to be successful.

B : erage waiting times for treatment.

C : tient satisfaction ratings.

D : aff costs compared to previous years.

E : venue generated from car park charges.

Answer: A,B,C

Question 5

Which THREE of the following are considered in detail in IFRS 7 Financial Instruments: Disclosures?

A : edit risk

B : iness risk

C : rket risk

D : terprise risk

E : quidity risk

Answer: A,C

Page: 1 / 61

Total 305 Questions | Updated On: Apr 28, 2026

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