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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 84 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 84
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Which of the following are limitations of financial statement figures for ratio analysis? Select the ALL that apply.

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Suggested Answer: A, B, C, D

by Izetta at Apr 10, 2024, 04:34 PM

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Celestine
10 days ago
I'm with Dominic on option B. Financial statements are purely financial data, which limits the insights we can gain from ratio analysis. We need other types of information as well.
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Danica
12 days ago
Haha, option F made me chuckle. Financial statements definitely don't provide forecast data, that's the job of the analysts! But I agree, A, C, and D are the clear limitations here.
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Tambra
13 days ago
I think option E is also a valid limitation. Financial statements can contain a lot of detailed information that needs to be summarized and analyzed before it's really useful for ratio analysis.
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Dominic
14 days ago
Hmm, I'm pretty sure option B is also a limitation. Financial statements only provide financial information, not operational or other non-financial data that could be useful for analysis.
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Jose
16 days ago
I agree with Denise. Options A, C, and D seem clear, but I'm not convinced that B, E, and F are actual limitations. Financial statements do provide financial information, and I wouldn't say the information is complicated or only provides forecasts.
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Denise
17 days ago
This question really tests our understanding of the limitations of financial statements for ratio analysis. I think options A, C, and D are definitely true, but I'm not sure about the others.
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