CIMAPRA19-F02-1 Exam Dumps

AB sold the majority of its operating equipment to LM for cash on 30 December 20X9 and then immediately leased it back under an operating lease.

AB used the cash proceeds from the sale to reduce its long term borrowings significantly. No early repayment charge was levied by the lender.

Which of the following statements is truein respect of AB's ratios calculated at 31 December 20X9?

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BC are currently seeking to establish an accounting policy for a particular type of transaction.

There are four alternative ways in which this transaction can be treated. Each treatment will have a different outcome on the financial statements as follows:

* Treatment one means that the financial statements will be easier to prepare.

* Treatment two will give a fair representation of the transaction in the financial statements.

* Treatment three will maximise the profit figure presented in the financial statements.

* Treatment four means that the financial statements will be more easily understood by shareholders.

Which accounting treatment should BC adopt?

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The basic earning per share computed by a company for year ended 31st March 20X7 is 2 per share. The company had certain convertible debentures outstanding as on 31st March 20X7. The conversion of debentures to equity shares would result in the earnings per share to be 2.2. Which of the following should the company disclose?

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Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:

At 30 April 20X9 the ordinary shares are trading at $4.75.

What is the price earnings (P/E) ratio for RST at 30 April 20X9?

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Which TWO of the following are relevant ethical considerations when selecting an accounting policy?

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