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: Nov 14, 2024

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Question 1

ST has sold its main office property, which had a carrying value of $360,000,to AB, a property management entity.

The property was sold for $400,000 which isequal to itsfair value and was immediately leased back under an operating lease agreement.

Which of the following journals will record this transaction?

A :

B :

C :

D :

Answer: A

Question 2

Whatis meant by the term 'a placing of ordinary shares'?

A : lling new ordinary shares to a financial institution on a pre-arranged basis.

B : lling new ordinary shares directly to the public.

C : lling existing ordinary shares to new investors through a stock exchange.

D : lling new ordinary shares to existing shareholders.

Answer: A

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

GH owned 70% of the equity share capital of XY at 1 January 20X6. GH acquired a further 20% of XY's equity share capital on 31 December 20X6 for $430,000. Non controlling interest was measured at $600,000 immediately prior to the 20?quisition.

Which of the following amounts will GH debit to non controlling interest when the 20?quisition is adjusted for in its consolidated financial statements at 31 December 20X6?

A : $400,000

B : $120,000

C : $200,000

D : $430,000

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: Nov 14, 2024

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