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CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 106 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 106
Topic #: 2
[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 Latricia at Jan 22, 2025, 03:37 AM

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Melita
1 months ago
I believe E is not a limitation, as summarising information is necessary for analysis
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Floyd
1 months ago
Haha, F is a good one. I wish financial statements could give us forecast data, but that's not really their purpose.
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Felton
15 days ago
A) Only provides historic data
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Haydee
1 months ago
I think D is also a limitation, as financial statements are summarised
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Felton
1 months ago
I think B and E are also important limitations. The information can be quite complex and not always easy to interpret.
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Yolande
9 days ago
A) Only provides historic data
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Belen
1 months ago
User 2
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Long
1 months ago
User 1
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Cristen
2 months ago
I agree with Myrtie, financial statements only show past data
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Myrtie
2 months ago
A and C
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Tawny
2 months ago
A, C, and D seem like the obvious ones to me. Financial statements only give you historical data and summarized info, not much insight into trends over time.
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Anissa
1 months ago
That's right. Financial statements do not give forecast data and contain complicated information that needs to be summarised.
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Graciela
1 months ago
D) Provide only summarised information
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Anissa
1 months ago
A, C, and D are correct. Financial statements only provide historic data, limited information to identify trends over time, and summarised information.
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Graciela
1 months ago
C) Limited information to identify trends over time
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Graciela
2 months ago
A) Only provides historic data
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