CIMA F2 : Advanced Financial Reporting

Automatic analysis your practice

Once you have practiced on our Advanced Financial Reporting test questions, the system will automatically memorize and analyze all your practice. You must finish the model test in limited time. There have a timer on the right of the interface. Once you begin to do the exercises of the F2 test guide, the timer will start to work and count down. If you don't finish doing the exercises, all your exercises of the F2 exam questions will be delivered automatically. Then the system will generate a report according to your performance. You will clearly know where you are good at or not. Then you can make your own learning plans based on the report of the F2 test guide. Also, you will do more practices that you are not good at until you completely have no problem.

Perhaps you still feel confused about our Advanced Financial Reporting test questions when you browse our webpage. There must be many details about our products you would like to know. Do not hesitate and send us an email. Gradually, the report will be better as you spend more time on our F2 exam questions. As you can see, our system is so powerful and intelligent. What most important it that all knowledge has been simplified by our experts to meet all people's demands. So the understanding of the F2 test guide is very easy for you. Our products know you better.

Easy access to assistance

You can write down your doubts or any other question of our Advanced Financial Reporting test questions. We warmly welcome all your questions. Our online workers are responsible for solving all your problems with twenty four hours service. You still can enjoy our considerate service after you have purchased our F2 test guide. If you don’t know how to install the study materials, our professional experts can offer you remote installation guidance. Also, we will offer you help in the process of using our F2 exam questions. Also, if you have better suggestions to utilize our study materials, we will be glad to take it seriously. All of our assistance is free of charge. We are happy that our small assistance can change you a lot. You don't need to feel burdened. Remember to contact us!

Suitable for all people

Different age groups prefer different kinds of learning methods. In order to meet the requirements of all people, we have diversified our F2 exam questions to suit a wider range of lifestyles and tastes. At present, we have PDF version, online engine and software version. You can choose which F2 test guide version suits you best. Generally, young people are inclined to purchase online engine or software version because they like experiencing new things. Middle aged people are more likely to choose PDF version because they get used to learning the printed Advanced Financial Reporting test questions. Of course, the combination use of different version of the F2 test guide is also a good choice. You can purchase according to your own tastes.

CIMA F2 Exam Syllabus Topics:

CIMA Advanced Financial Reporting Sample Questions:

1. Which TWO of the following are true for an entity raising equity finance using a rights issue rather than a placing of equity shares to new investors?

A) The administration is more complex and therefore likely to be more costly.
B) The cost of underwriting will be lower because the risk of the issue is lower.
C) The issue will widen the base of shareholders if all shareholders take up their rights.
D) The voting rights of existing shareholders will be unaffected if the shareholders take up their rights.
E) The shares will sell at a higher price and therefore generate more funds.

2. AB and CD are separate entities that prepare financial statements to 31 May using international accounting standards. AB and CD provide technical support services to the financial services industry and operate in the same country. The financial statements are identical except for the following:
* AB purchased all operating equipment, paying $100,000, using a 5 year bank loan. The useful life of the equipment was 5 years.
* CD signed an operating lease agreement for all operating equipment for 5 years paying
$20,000 per year.
Both entities charge all expenses relating to the equipment to cost of sales.
From the information provided, which of the following ratios would be reliably comparable for AB and CD?

A) Return on capital employed
B) Gross profit margin
C) Profit before tax margin
D) Non current asset turnover

3. PQ and WX are similar sized entities and operate in the same industry within Country X . Both operate from a single warehouse and have similar levels of non current asset resources.
The following ratios have been calculated at 31 October 20X8:

If considered individually, which of the following would limit the usefulness of these ratios in assessing the comparative financial performances of PQ and WX?

A) Depreciation of warehouses being charged to cost of sales by PQ and distribution costs by WX.
B) Operating lease rentals for plant and equipment being charged to administration expenses by PQ and distribution costs by WX.
C) Year end review of equipment resulting in WX charging an impairment loss while PQ's equipment is not impaired.
D) Increased prices for raw materials, which was passed on to customers by both entities.

4. Information extracted from JK's statement of financial position for the year ended 31 May 20X5 is as follows:

Calculate the gearing ratio (Debt/Equity measured as a percentage) at 31 May 20X5.
Give your answer to one decimal place.
? %

5. MNO is listed on its local stock exchange. It has a high level of gearing compared to the industry average as a result of rapid expansion funded by debt. The directors of MNO would like to reduce the level of gearing by raising equity to fund the next expansion project. The directors are considering whether to use a placing of new shares or a rights issue.
Which of the following statements is true?

A) A rights issue would not need to be underwritten because the risk of the shares not being taken up is small compared to a placing.
B) A placing will increase the proportion of the total number of MNO's shares held by large investors.
C) The directors must use a placing before offering the rights issue to existing shareholders.
D) The administration costs associated with a placing are usually more expensive than a rights issue because less investors are involved.

Solutions: