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CIMA F2 Advanced Financial Reporting F2 Question # 13 Topic 2 Discussion

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CIMA F2 Advanced Financial Reporting F2 Question # 13 Topic 2 Discussion

F2 Exam Topic 2 Question 13 Discussion:
Question #: 13
Topic #: 2

FG and RS operate in the same retail sector within the same country and are of a similar size. The following ratios have been calculated based on the financial statements for the year ended 30 September 20X4:

  F2 Question 13

Which of the following factors would limit the usefulness of these ratios as a basis for assessing the comparative performances of FG and RS?
A.

RS has a higher level of borrowings and associated finance costs.

B.

RS sold a piece of land for a sum much greater than its carrying value.

C.

RS operates at the low margin end of the market whilst FG operates at the high margin end.

D.

FG has a higher level of deferred tax liabilities than RS.

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Actual exam question for CIMA F2 exam by Rai70019 at Aug 3, 2025, 12:00:00 AM

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