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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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Eun
8 months ago
Exactly, that's another limitation to keep in mind during the exam.
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Kristal
8 months ago
Another limitation is that financial statement figures only provide summarised information, right?
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Huey
8 months ago
Yes, that's correct. It's one of the limitations.
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Edwin
8 months ago
One limitation is that financial statement figures only provide historic data, right?
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Kristal
8 months ago
I agree, it's crucial to understand these limitations.
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Edwin
9 months ago
I think the limitations of financial statement figures for ratio analysis are important to consider in exams.
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Rickie
9 months ago
I believe another limitation is that financial statement figures contain complicated information that needs to be summarised, making it harder to analyze.
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Brittni
10 months ago
I agree with that. Also, they provide only summarised information, which can be a limitation for analyzing trends over time.
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Jacob
10 months ago
I think the limitations of financial statement figures for ratio analysis are that they only provide historic data and financial information.
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Christene
9 months ago
D) Provide only summarised information
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Billi
9 months ago
C) Limited information to identify trends over time
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Cherrie
9 months ago
A) Only provides historic data
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Celestine
10 months 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
10 months 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
11 months 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
11 months 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
11 months 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
11 months 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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