CIMAPRA19-F02-1 Exam - Topic 4 Question 96 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 96
Topic #: 4

[All CIMAPRA19-F02-1 Questions]

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

AOnly provides historic data

BOnly provides financial information

CLimited information to identify trends over time

DProvide only summarised information

EContains complicated information that needs to be summarised

FOnly provides forecast data

Show Suggested Answer

Suggested Answer: A, B, C, D

by Shannan at Sep 10, 2024, 11:52 PM

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Titus

3 months ago

D is true too, summarised info can miss details.

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Malissa

3 months ago

Surprised that people think E is a limitation, isn't that just part of the process?

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Macy

3 months ago

B seems off, financial info is crucial for analysis.

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Glennis

4 months ago

I agree, only historic data is a big drawback!

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Beckie

4 months ago

A and C are definitely limitations.

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Lino

4 months ago

I practiced a similar question, and I recall that option D is also a limitation since financial statements summarize a lot of detailed information.

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Bobbie

4 months ago

I think option C could be relevant because if the data is only historic, it might not show trends effectively over time.

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Alona

4 months ago

I'm not entirely sure, but I feel like option B might not be a limitation since financial statements do provide some non-financial insights too.

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Portia

5 months ago

I remember we discussed how financial statements mainly reflect past performance, so I think option A is definitely a limitation.

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My

5 months ago

This is a good opportunity to showcase my understanding of ratio analysis. I'll make sure to select all the relevant limitations.

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Izetta

5 months ago

I feel confident I know the key limitations, but I'll double-check each option to be sure.

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Sean

5 months ago

Okay, let me see. I'll start by considering each option and how it relates to the limitations of financial statement figures.

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Peter

5 months ago

This question seems straightforward, I think I can handle it.

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Stephane

5 months ago

Hmm, I'm not sure about this one. I'll need to think it through carefully.

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Sharee

5 months ago

Okay, I've got this. The answer is clearly B - I need to convert the RealMedia files to WMV so they'll play in Windows Media Player.

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Alexis

1 year ago

I see your point, Paola. It's important to consider the limitations when using financial statement figures for ratio analysis.

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Ceola

1 year ago

I'm just glad I don't have to analyze these financial statements. The numbers give me a headache just looking at them!

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Gertude

1 year ago

Haha, F is a good one! Financial statements only provide forecast data, not actual data. Really helpful for ratio analysis, right?

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Paola

1 year ago

I think D is also a limitation because financial statements provide only summarised information.

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Kathrine

1 year ago

B and E are also good options. Financial statements only provide financial information and the information can be complicated, needing to be summarized.

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Kanisha

1 year ago

D) Provide only summarised information

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Hyun

1 year ago

E) Contains complicated information that needs to be summarised

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Xuan

1 year ago

C) Limited information to identify trends over time

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Tracey

1 year ago

D) Provide only summarised information

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Vallie

1 year ago

A) Only provides historic data

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Maile

1 year ago

C) Limited information to identify trends over time

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Justine

1 year ago

A) Only provides historic data

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Felicidad

1 year ago

I agree with Agustin. Financial statement figures can be limited in that way.

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Agustin

1 year ago

A and C are limitations because they only provide historic data and limited information to identify trends over time.

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Marva

1 year ago

I think the correct answers are A, C, and D. Financial statements only provide historic data, limited information to identify trends, and summarized information.

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Veronika

1 year ago

That's correct, financial statements do have limitations in terms of providing historic data, limited trend identification, and summarized information.

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Veronika

1 year ago

I agree, financial statements only provide historic data, limited information to identify trends, and summarized information.

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