CIMA Exam CIMAPRA19-F02-1 Topic 3 Question 104 Discussion

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

Question #: 104
Topic #: 3

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 Yuriko at Dec 07, 2024, 02:32 AM

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3 days ago

A, C, and D seem like the right answers. Financial statements only give us a snapshot in time and don't show how things have changed over time.

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4 days ago

I think D is also a limitation because financial statements only provide summarised information, which may not give a complete picture.

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9 days ago

I agree with Santos. Financial statement figures can be useful, but they do have their limitations.

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12 days ago

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

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