Free Actual CIMAPRA19-F02-1 Exam Questions & Answers

Question 1

Which of the following best describes the goal of WACC as a measure?

ATo work out the average return that is required by the company on its investments in order to satisfy all shareholders and debt holders.

BTo work out the average return that is required by the company on its investments in order to satisfy all shareholders.

CTo work out the average return that is required by the company on its investments in order to satisfy all debt holders.

DTo work out the minimum return that is required by the company on its investments in order to satisfy all shareholders and debt holders.

Correct : A

Question 2

Which of the following statements are true regarding consolidated cash flows after the acquisition of a subsidiary?

Select ALL that apply.

AThe subsidiary's cash inflows and outflows become part of the group after purchase

BCash acquired from the subsidiary upon purchase is represented as a cash inflow

CAdjustments need to be made to group working capital in light of the working capital acquired from the subsidiary

DNet cash paid to acquire a subsidiary is shown as a cash inflow within the cash flow from investing activities

EDisclosure notes are required to show cash and cash equivalents paid or received, but not details of goodwill, assets and liabilities acquired

FFurther adjustments are required to cash inflows and outflows after profit has been consolidated

Correct : A, B, C

CIMAPRA19-F02-1 Exam Questions - Navigate Your Path to Success