Free CIMA F2 Practice Exam with Questions & Answers

Ratios have been produced below for EF for the year to 31 March:

Which TWO of the following could explain the movement in both gearing and ROCE?

JK has calculated its inventory holding period:

Which THREE of the following would have contributed to the above movement in inventory holding period?

On 1 January 20X4 EF grants each of its 125 employees 500 share options on the condition that they remain in employment for 3 years. During the year to 31 December 20X4 10 employees left and It is expected that a further 25 will leave before the end of the vesting period.

The fair value of each share option is $30 on 1 January 20X4 and $45 on 31 December 20X4.

What is the journal entry in respect of these share options in EF's financial statements for the year ended 31 December 20X4?

AB acquired a financial investment on 1 January 20X9, incurring $5,000 related agency fees.  AB initially classified the investment as held for trading, in accordance with IAS 32 Financial Instruments: Presentation.

Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it prepared its financial statements to 31 December 20X9?

GH owned 70% of the equity share capital of XY at 1 January 20X6.  GH acquired a further 20% of XY's equity share capital on 31 December 20X6 for $430,000.  Non controlling interest was measured at $600,000 immediately prior to the 20% acquisition.  

Which of the following amounts will GH debit to non controlling interest when the 20% acquisition is adjusted for in its consolidated financial statements at 31 December 20X6?

PQ entered into a $300,000 contract on 1 January 20X9 to provide computer hardware to WX with support services for the 3 years from the date of installation.

The contract is made up as follows: 

The hardware was delivered to WX on 1 January 20X9 and installed immediately. WX paid the full value of the contract on 30 June 20X9.

What journal entry records PQ's revenue from this contract for the year ended 31 December 20X9?

XY owned 80% of the equity share capital of AB at 1 January 20X5.  XY disposed of 20% of AB's equity share capital on 31 December 20X5 for $200,000.  The non controlling interest was measured at $140,000 immediately prior to the disposal.  

What was the amount of the credit to retained earnings that XY will process in respect of this disposal when it prepares its consolidated financial statements at 31 December 20X5?

FG's statement of profit or loss account for year ended 31 December 20X1 is:

What is the operating profit margin for FG for the year ended 31 December 20X1?

Give your answer to the nearest whole %.

 ?  %

GH acquired 3,000,000 of the 12,000,000 equity shares of JK. All shares carried equal voting rights and no other single shareholder of JK held more than 10% of the equity shares. GH has the power to participate in the financial and operating policy decisions but not control them.

Based on the information provided above, how would GH's investment in JK be accounted for in its consolidated financial statements?

An entity has declared a dividend of $0.12 a share. The cum dividend market price of one equity share is $1.40.

Assuming a dividend growth rate of 7% a year, what is the entity's cost of equity?