CIMA F2 Exam Past Papers

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Transcript of CIMA F2 Exam Past Papers

Page 1: CIMA F2  Exam Past Papers
Page 2: CIMA F2  Exam Past Papers

F2 extends the scope of the F1 Financial Management exam.

It looks at advanced topics in financial accounting -

the preparation of full consolidated financial

statements and complex issues of principle in

accounting standards.

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How CIMA benefit your business

Analysis - Understanding the history behind numbers and use it to make

business decisions

Strategy – Using the insight from analysis to help formulate business

strategy to create wealth and shareholder value.

Risk - The application of analytical skills to observe business processes end

end a pair identify and manage risks.

Planning – using accounting techniques to plan and budget.

Communication – knowing what information management needs

and explaining the numbers to non-financial managers.

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The Sign Of Success

CIMA F2 Financial Management

Questions & Answers

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Page 7: CIMA F2  Exam Past Papers

Question No 1:

What is Sources of long term finance?

(1) The capital markets,

(2) Bank borrowings,

(3) Government and similar sources

Answer:

Page 8: CIMA F2  Exam Past Papers

Question No 2:

What is Share?

A fixed identifiable unit of capital in an entity which normally

has a fixed nominal value, which may be quite different

from its market value. Shareholders receive returns from their

investment in shares in the form of dividends, and also

capital growth in the share price.

Answer:

Page 9: CIMA F2  Exam Past Papers

Question No 3:

What is Ordinary shares?

Ordinary shares pay dividends at the discretion of the entity's

directors. The ordinary shareholders of a company are the

owners of the company and they have the right to attend

meetings and vote on any important matters.

Answer:

Page 10: CIMA F2  Exam Past Papers

Question No 4:

What is Preference shares?

Preference shares are shares that pays a fixed dividend, which is

paid in preference to (before) ordinary share dividends, hence

the name.

Answer:

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Question No 5:

Different types of preference shares

• Cumulative preference shares, for which dividends must be paid

including skipped dividends i.e. if a dividend is skipped one year, the

skipped dividend has to be paid the following year along with the 'normal'

dividend.

• Non-cumulative preference shares, for which skipped dividends do not

have to be paid later.

• Participating preference shares, which give the holder fixed dividends

plus extra earnings based on certain conditions (in a similar way to ordinary

shares).

• Convertible preference shares, which can be exchanged for a specified

number of ordinary shares on some given future date.

Answer:

Page 12: CIMA F2  Exam Past Papers

Question No 6:

What is Capital markets?

Capital markets (or stock markets) must fulfil both primary and

secondary functions.

Answer:

Page 13: CIMA F2  Exam Past Papers

Question No 7:

What is Private limited company (Ltd in UK terminology)?

A private company limited by shares, usually called a private

limited company, has shareholders with limited liability and its

shares may not be offered to the general public, unlike those

of a public limited company

Answer:

Page 14: CIMA F2  Exam Past Papers

Question No 8:

What is 'Limited by shares'?

Means that the company has shareholders, and that the liability

of the shareholders to creditors of the company is limited to the

capital originally invested, i.e. the nominal value of the shares

and any premium paid in return for the issue of the shares by the

company. A shareholder's personal assets are thereby

protected in the event of the company's insolvency, but money

invested in the company will be lost.

Answer:

Page 15: CIMA F2  Exam Past Papers

Question No 9:

Public limited company (plc in UK terminology)

A public limited company is a limited liability company that

may sell shares to the public. It can be either an unlisted

company, or a listed company on the stock exchange.

Answer:

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Question No 10:

What is A stock exchange listing?

When an entity obtains a listing (or quotation) for its shares on

a stock exchange this is referred to as a flotation or an Initial

Public Offering (IPO).

Answer:

Page 17: CIMA F2  Exam Past Papers

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