Free CIMA CIMAPRO19-F02-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-F02-1-ENG exam questions and correct answers

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Total 270 Questions | Updated On: Aug 19, 2026

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Question 1

Which THREE of the followingwould typically indicate a finance lease?

A : asset with a useful life of ten years is being leased for ten years.

B : lessor is responsible for the annual maintenance of the asset.

C : lessee has the option to buy the asset at the end of the lease for $1.

D : lease contract for an asset includes an upgrade to the asset every two years.

E : leased asset has been specifically modified for the lessee's use.

Answer: A,C

Question 2

How would KL account for itsinvestment in MNin its consolidated financial statements for the year to 31 December 20X9?

A : int venture

B : int arrangement

C : nancial asset

D : bsidiary

Answer: A

Question 3

WX acquired60% of theequitysharesof CD on 1 January 20X3. WX sold5% of the equityshares it heldfor $60,000on 31 December 20X5. At that datethe net assetsof CD were $120,000and thefair value of the non-controlling interestin CDwas measured at$21,000.No goodwill arose on the original acquisition of CD.

When preparing its consoldiated financial statements, WX will process which of the following adjustments to its group retained earnings?

A : debit of $39,000

B : credit of $54,000

C : credit of $39,000

D : debit of $54,000

Answer: B

Question 4

RST sells computer equipment and prepares its financial statements to 31 December.

On 30 September 20X5 RST soldcomputer software along with a two year maintenance package to a customer. The customer is given the right to return the goods within six months and claim a full refund if they are not satisfied with the computer software. The risk of return is considered to be insignificant for RST.

How should the revenue from this transaction and the right of return be recognised in thefinancial statements for the year ended 31 December 20X5?

A : cognise 100% of the revenue from both the sale of goods and the maintenance contract and create aprovision for the anticipated level of returns.

B : not recognise any revenue from the sale of goods or the maintenance contract and do not create aprovision for the anticipated level of returns.

C : cognise 12.5% of the revenue from both the sale of goods and the maintenance contract and do not create aprovision for the anticipated level of returns.

D : cognise 100% of the revenue from the sale of goods,12.5% of the revenue from the maintenance contract and create aprovision for the anticipated level of returns.

Answer: D

Question 5

W and Y are very similar entities with the same level of profit before interest and tax. However, W has gearing of 95% and Y has gearing of 30%.

Which of the following statements is true?

A : vesting in W carries a higher level of risk than investing in Y.

B : greater proportion of profit will be available out of which to declare a dividend in W.

C : vestors in Y will expect a higher return than investors in W.

D : has a greater commitment to meet interest payments than W.

Answer: A

Page: 1 / 54

Total 270 Questions | Updated On: Aug 19, 2026

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