Free CIMA CIMAPRA19-F02-1 Actual Exam Questions
The questions for this exam were last updated on January 7, 2026
Dumps Box (DumpsBox) offers up-to-date practice exam questions for CIMAPRA19-F02-1 certification exam which are developed and validated by CIMA subject domain experts certified in CIMA CIMAPRA19-F02-1 . These practice questions are update regularly as we keep an eye on any recent changes in CIMAPRA19-F02-1 syllabus, and when there is update our team quickly adjusts the questions. This commitment to providing the best quality exam prep material to certification aspirants is what makes DumpsBox.com the best certification exam prep website. On top of that, our strong, yet strictly moderated, community based feedback keeps the content clean and current. Each question has helpful community discussion that provides it extra perspective and introduces helpful resources for better exam preparation. This also saves students from other outdated practice questions or illicit exam dumps that can have adverse affects on career. Browse through our CIMA CIMAPRA19-F02-1 exam questions and pass your exam on first try.
Question No. 1
LM is a car dealer that is supplied inventory by car manufacturer SQ. Trading between LM and SQ is
subject to a contractual agreement. This agreement states the following:
• Legal title of the cars remains with SQ until they are sold by LM to a third party.
• Upon notification of sale to a third party by LM, SQ raises an invoice at the price agreed at the
original date of delivery to LM.
• LM has the right to return any car at any time without incurring a penalty.
• LM is responsible for insuring all of the cars on its property.
When considering how these cars should be accounted for, which THREE of the following statements
are true?
subject to a contractual agreement. This agreement states the following:
• Legal title of the cars remains with SQ until they are sold by LM to a third party.
• Upon notification of sale to a third party by LM, SQ raises an invoice at the price agreed at the
original date of delivery to LM.
• LM has the right to return any car at any time without incurring a penalty.
• LM is responsible for insuring all of the cars on its property.
When considering how these cars should be accounted for, which THREE of the following statements
are true?
Select all that apply, then reveal solution.
Question No. 2
On 1 September 20X3, GH purchased 200,000 $1 equity shares in QR for $1.20 each and classified
this investment as held for trading.
GH paid a 1% transaction fee to its broker on this transaction. QR's equity shares had a fair value of
$1.35 each on 31 December 20X3.
Which of the following journals records the subsequent measurement of this financial instrument at
31 December 20X3?
this investment as held for trading.
GH paid a 1% transaction fee to its broker on this transaction. QR's equity shares had a fair value of
$1.35 each on 31 December 20X3.
Which of the following journals records the subsequent measurement of this financial instrument at
31 December 20X3?
Select one option, then reveal solution.
Question No. 3
AB's financial information shows that the non current assets' carrying value is greater than the tax
base at the year end.
What is the journal entry to record the movement in the provision for deferred tax resulting from this
difference?
base at the year end.
What is the journal entry to record the movement in the provision for deferred tax resulting from this
difference?
Select one option, then reveal solution.
Question No. 4
Information from the financial statements of an entity for the year to 31 December 20X5:
The gearing ratio calculated as debt/equity and interest cover are:
The gearing ratio calculated as debt/equity and interest cover are:
Select one option, then reveal solution.
Question No. 5
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% acquisition.
Which of the following amounts will GH debit to non controlling interest when the 20% acquisition is
adjusted for in its consolidated financial statements at 31 December 20X6?
equity share capital on 31 December 20X6 for $430,000. Non controlling interest was measured at
$600,000 immediately prior to the 20% acquisition.
Which of the following amounts will GH debit to non controlling interest when the 20% acquisition is
adjusted for in its consolidated financial statements at 31 December 20X6?
Select one option, then reveal solution.
Question No. 6
LM has made the following share purchases during the year:
• Purchased 55% of the equity share capital of OP.
• Purchased 45% of the equity share capital of QR. LM have the power to appoint the majority of
board members on the QR board.
• Purchased 30% of the equity share capital of ST. LM is represented by one director on the main
board of ST which has five members in total. The other 70% of ST's equity share capital is owned by a
single company, UV.
The Managing Director has told you that OP has performed well, but both QR and ST have not
performed as expected. He is therefore pleased that OP will be included as a subsidiary and that QR
and ST will only be included as investments in the group financial statements.
In accordance with the ethical principle of professional competence and due care how should the
investments in OP, QR and ST be treated in the group financial statements?
• Purchased 55% of the equity share capital of OP.
• Purchased 45% of the equity share capital of QR. LM have the power to appoint the majority of
board members on the QR board.
• Purchased 30% of the equity share capital of ST. LM is represented by one director on the main
board of ST which has five members in total. The other 70% of ST's equity share capital is owned by a
single company, UV.
The Managing Director has told you that OP has performed well, but both QR and ST have not
performed as expected. He is therefore pleased that OP will be included as a subsidiary and that QR
and ST will only be included as investments in the group financial statements.
In accordance with the ethical principle of professional competence and due care how should the
investments in OP, QR and ST be treated in the group financial statements?
Select one option, then reveal solution.
Question No. 7
Which TWO of the following would be the primary disadvantages of producing the disclosures
required in IFRS12 Disclosure of Interests in Other Entities?
required in IFRS12 Disclosure of Interests in Other Entities?
Select all that apply, then reveal solution.
Question No. 8
On 30 November 20X9 OPQ acquires a financial asset that is classified as Available for Sale.
Which of the following describes the value of the financial asset on the date of acquisition?
Which of the following describes the value of the financial asset on the date of acquisition?
Select one option, then reveal solution.
Question No. 9
The consolidated statement of profit or loss for VW for the year ended 30 September 20X7 includes
the following:
What is VW's interest cover for the year ended 30 September 20X7?
the following:
What is VW's interest cover for the year ended 30 September 20X7?
Select one option, then reveal solution.
Question No. 10
CORRECT TEXT
AB acquired an investment in a debt instrument on 1 January 20X5 at its nominal value of $25,000,
which it intends to hold until maturity. The instrument carried a fixed coupon interest rate of 5%,
payable in arrears. Transactions costs of $5,000 were paid in respect of this investment. The effective
interest rate applicable to this instrument was estimated at 9%.
Calculate the value of this investment that AB will include in its statement of financial position at 31
December 20X5.
Give your answer to the nearest whole number.
$ ?
AB acquired an investment in a debt instrument on 1 January 20X5 at its nominal value of $25,000,
which it intends to hold until maturity. The instrument carried a fixed coupon interest rate of 5%,
payable in arrears. Transactions costs of $5,000 were paid in respect of this investment. The effective
interest rate applicable to this instrument was estimated at 9%.
Calculate the value of this investment that AB will include in its statement of financial position at 31
December 20X5.
Give your answer to the nearest whole number.
$ ?
Question No. 11
CORRECT TEXT
The capital structure of ST is summarised in the table below:
What is the weighted average cost of capital of ST?
Give your answer as a percentage to one decimal place.
? %
The capital structure of ST is summarised in the table below:
What is the weighted average cost of capital of ST?
Give your answer as a percentage to one decimal place.
? %
Question No. 12
CORRECT TEXT
AB acquired its subsidiary on 1 January 20X7 when the fair value of net assets was the same as book
value with the exception of property, plant and equipment that had a fair value $500,000 higher than
carrying value.
These assets were assessed to have a remaining useful life of 5 years from the date of acquisition.
What is the net consolidation adjustment to the property, plant and equipment balance at 31
December 20X9?
Give your answer to the nearest whole number (in '$000s).
$?
AB acquired its subsidiary on 1 January 20X7 when the fair value of net assets was the same as book
value with the exception of property, plant and equipment that had a fair value $500,000 higher than
carrying value.
These assets were assessed to have a remaining useful life of 5 years from the date of acquisition.
What is the net consolidation adjustment to the property, plant and equipment balance at 31
December 20X9?
Give your answer to the nearest whole number (in '$000s).
$?
Question No. 13
CORRECT TEXT
MN had the following profit figures for the year ended 30 November 20X6:
MN's statement of financial position at 30 November 20X6 included the following:
Calculate return on capital employed for MN for the year ended 30 November 20X6.
Give your answer to one decimal place.
? %
MN had the following profit figures for the year ended 30 November 20X6:
MN's statement of financial position at 30 November 20X6 included the following:
Calculate return on capital employed for MN for the year ended 30 November 20X6.
Give your answer to one decimal place.
? %
Question No. 14
CORRECT TEXT
KL acquired 75% of the equity share capital of MN on 1 January 20X8. The group's policy is to value
non-controlling interest at fair value at the date of acquisition. MN acquired 60% of the equity share
capital of PQ on 1 January 20X9 for $360 million.
At 1 January 20X9 the fair value of the non-controlling interest in PQ was $220 million and the fair
value of the net assets of PQ at 1 January 20X9 were $320 million.
Calculate the goodwill arising on the acquisition of PQ at 1 January 20X9.
Give your answer to the nearest million.
$ ? million
KL acquired 75% of the equity share capital of MN on 1 January 20X8. The group's policy is to value
non-controlling interest at fair value at the date of acquisition. MN acquired 60% of the equity share
capital of PQ on 1 January 20X9 for $360 million.
At 1 January 20X9 the fair value of the non-controlling interest in PQ was $220 million and the fair
value of the net assets of PQ at 1 January 20X9 were $320 million.
Calculate the goodwill arising on the acquisition of PQ at 1 January 20X9.
Give your answer to the nearest million.
$ ? million
Question No. 15
CORRECT TEXT
LM acquired 15% of the equity share capital of ST on 1 January 20X6 for $18 million. LM acquired a
further 50% of the equity share capital of ST for $50 million on 1 January 20X7 when the fair value of
ST's net assets was $82 million. The original 15% investment in ST had a fair value of $20 million at 1
January 20X7. The non controlling interest in ST was measured at its fair value of $30 million at the
date control in ST was acquired.
Calculate the goodwill arising on the acquisition of ST that LM included in its consolidated financial
statements at 31 December 20X7.
Give your answer to the nearest $ million.
$ ? million
LM acquired 15% of the equity share capital of ST on 1 January 20X6 for $18 million. LM acquired a
further 50% of the equity share capital of ST for $50 million on 1 January 20X7 when the fair value of
ST's net assets was $82 million. The original 15% investment in ST had a fair value of $20 million at 1
January 20X7. The non controlling interest in ST was measured at its fair value of $30 million at the
date control in ST was acquired.
Calculate the goodwill arising on the acquisition of ST that LM included in its consolidated financial
statements at 31 December 20X7.
Give your answer to the nearest $ million.
$ ? million