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CIMA F2 Exam With Confidence Using Practice Dumps

Exam Code:
F2
Exam Name:
F2 Advanced Financial Reporting
Certification:
Vendor:
Questions:
268
Last Updated:
May 21, 2026
Exam Status:
Stable
CIMA F2

F2: CIMA Management Exam 2025 Study Guide Pdf and Test Engine

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F2 Advanced Financial Reporting Questions and Answers

Question 1

AB acquired an investment in a debt instrument on 1 January 20X5 at its nominal value of $25,000, which it intends to hold until maturity. The instrument carried a fixed coupon interest rate of 5%, payable in arrears. Transactions costs of $5,000 were paid in respect of this investment.  The effective interest rate applicable to this instrument was estimated at 9%.  

Calculate the value of this investment that AB will include in its statement of financial position at 31 December 20X5.

Give your answer to the nearest whole number. 

$ ?  

Options:

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Question 2

Information from the financial statements of an entity for the year to 31 December 20X5:

  

 The gearing ratio calculated as debt/equity and interest cover are:

Options:

A.

gearing of 15% and interest cover of 6.

B.

gearing of 16% and interest cover of 6.

C.

gearing of 15% and interest cover of 4.

D.

gearing of 16% and interest cover of 4.

Question 3

MNO has calculated its return on capital employed ratio for 20X4 and 20X5 as 41% and 56% respectively.

Taking each statement in isolation, which would explain the movement in the ratio between the 2 years?

Options:

A.

In 20X5 the average interest rate on borrowing decreased compared to 20X4.

B.

In 20X4 an onerous contract was provided for and this provision did not change in 20X5.

C.

In 20X5 the increase in value of MNO's head office was reflected in the financial statements.

D.

In 20X4 an unused building was sold at a price in excess of its carrying value.