Get CIMAPRO19-P03-1 Exam Practice Questions - Real and Updated

DFG's home currency is the D$.

DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency. DFG's treasurer has noted the following:

* Inflation has been running at 5% in DFG's home country and 8% in country L

* Interest rates are 7% in DFG's home country and 11% in country L

* The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196

Which of the following statements is consistent with these figures?

P Ltd manufactures and sells electrical goods through retail outlets.

Nis P Ltd'sSales Director. He has been recently promoted from a senior sales positionwith P Ltd. He has been forced to spend the first six months asSalesDirector on dealing withan administrative mess left behind bythe previous sales director.

You are aSeniorManagementAccountant at P Ltd. You have worked withN for many years.

N hasworked hardand has made manychangesthat have broughtsignificant benefit to the business.

Nhas asked you topostpone the recording of some purchase invoices so that he willmeethis quarterly targets on profit margin.

What should you do?

Which TWO of the following are reasons for a company to comply with the Committee of Sponsoring Organisations of the Treadway Commission 2017 Enterprise Risk Management Framework (COSO Framework)?

M plc has a $2 million loan outstanding on which the interest rate is reset every 6 months for the following 6 months and the interest is payable at the end of that 6-month period. The next 6-monthly reset period starts in 3 months and the treasurer of M plc thinks that interest rates are likely to rise between now and then.

Current 6-month rates are 7.2%and thetreasurer can get a rate of 7.7%for a 6-monthforwardrateagreement (FRA) starting in 3 months' time. By transacting an FRA thetreasurer can lock in a rate today of 7.7%.

If interest rates are 8.5%in 3 months' time,what willthe net amount payable be?

Give your answer to the nearestthousand dollars.

R is a manufacturer of biscuits. The market for biscuits is extremely competitive with many companies competing forcontracts with large supermarkets. The intensity of the competition means that prices are kept low; andthe buyers can demand higher levels of quality, and greater flexibility in supply arrangements.

Which of the following represent ways that theuse of an Information System could help R to win and retain supermarket contracts in such a competitive market?