Free CIMA CIMAPRO19-F02-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRO19-F02-1-ENG exam questions and correct answers

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Total 270 Questions | Updated On: Feb 19, 2025

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Question 1

KL sells luxury leather handbags and has 3 stores in exclusive shopping areas. Following years of static revenues and margins, in August 20X6KLopened a fourth store at a busy airport terminal which is proving to be successful.

The revenue and gross profit of KL for the years ended 31 March 20X7 and 20X6 are as follows:

Which of the following would be a contributing factor to the movement in the gross profit margin of KL?

A : worldwide shortage of leather resulting in increased prices from suppliers.

B : opportunity to sellhandbags in the airport store at a premium price.

C : locating a new supplier prepared to supply handbags at a cheaper price.

D : locating a new supplier closer to the warehouse, reducing distribution costs.

Answer: A

Question 2

Which TWO of the following are true in relation to IAS21 The Effects of Changes in Foreign Exchange Rates when consolidating an overseas subsidiary?

A : urrent period exchange gain or loss is shown within the consolidated statement of comprehensive income within other comprehensive income.

B : odwill is re-translated at the end of each reporting period and reflected at the period end exchange rate in the consolidated statement of financial position.

C : Assets and liabilities of the subsidiary are translated at each reporting date using the average exchange rate for the period.

D : odwill is reflected in the consolidated statement of financial position translated at the exchange rate on the date of acquisition.

E : statement of profit or loss of the subsidiary is translated for the reporting period using the closing exchange rate.

Answer: A,B

Question 3

Which THREE of the followingwould typically indicate a finance lease?

A : asset with a useful life of ten years is being leased for ten years.

B : lessor is responsible for the annual maintenance of the asset.

C : lessee has the option to buy the asset at the end of the lease for $1.

D : lease contract for an asset includes an upgrade to the asset every two years.

E : leased asset has been specifically modified for the lessee's use.

Answer: A,C

Question 4

Entity A entered into a 3 year operating lease on 1 April 20X3. The rentals are 5,000 a year payable in advance with an additional payment of $1,800 payable on 1 April 20X3

The rental expense to be included in the statement of profit or loss for the year ended 31 December 20X3 will be:

A : $4,200

B : $5,000

C : $6,800

D : $5,600

Answer: A

Question 5

RST sells computer equipment and prepares its financial statements to 31 December.

On 30 September 20X5 RST soldcomputer software along with a two year maintenance package to a customer. The customer is given the right to return the goods within six months and claim a full refund if they are not satisfied with the computer software. The risk of return is considered to be insignificant for RST.

How should the revenue from this transaction and the right of return be recognised in thefinancial statements for the year ended 31 December 20X5?

A : cognise 100% of the revenue from both the sale of goods and the maintenance contract and create aprovision for the anticipated level of returns.

B : not recognise any revenue from the sale of goods or the maintenance contract and do not create aprovision for the anticipated level of returns.

C : cognise 12.5% of the revenue from both the sale of goods and the maintenance contract and do not create aprovision for the anticipated level of returns.

D : cognise 100% of the revenue from the sale of goods,12.5% of the revenue from the maintenance contract and create aprovision for the anticipated level of returns.

Answer: D

Page: 1 / 54

Total 270 Questions | Updated On: Feb 19, 2025

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