support@Free-Braindumps.com
Register Login
Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
CrowdStrike
Anthropic
All Vendors
  1. Home
  2. Exams
  3. CIMA
  4. F2

Free F2 Exam Braindumps
Advanced Financial Reporting Questions 101–105 (page: 22)

Updated On: 10-Feb-2026
Page 22 of 55
PDF with 268 Questions

The following information has been extracted from the financial statements of two single entities, TUV and XYZ, for the year ended 30 September 20X3.
Which of the following options shows the gearing ratios (Debt/Equity) for TUV and XYZ at 30 September 20X3?

  1. Option
  2. Option
  3. Option

Answer(s): A



CORRECT TEXT
The following information has been extracted from the financial records of DEF for the year ended 31 December 20X2.



What is the operating cycle of DEF at 31 December 20X1? Assume there are 365 days in the year.
All workings should be rounded to whole days.
Give your answer in whole days.
? days.

  1. 80, 81

Answer(s): A



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?

  1. The administration is more complex and therefore likely to be more costly.
  2. The shares will sell at a higher price and therefore generate more funds.
  3. The voting rights of existing shareholders will be unaffected if the shareholders take up their rights.
  4. The cost of underwriting will be lower because the risk of the issue is lower.
  5. The issue will widen the base of shareholders if all shareholders take up their rights.

Answer(s): A,C



XY has a weighted average cost of capital (WACC) of 12%. The debt:equity ratio is 1:3 and this is considered low for the industry. XY needs to raise finance to purchase new machinery in the coming year.
Which of the following forms of finance is most likely to increase the WACC?

  1. Rights issue of equity shares
  2. 6% bank loan
  3. 8% preference shares
  4. Finance lease

Answer(s): A



FGH plans to issue a large number of shares to the public via an IPO. It is considering either an offer for sale at a fixed price or an offer for sale by tender.
Which of the following would be an advantage to FGH of using the offer for sale by tender compared to the fixed price offer?

  1. The shares will be sold to different investors at differing values thus maximising the capital raised.
  2. There would be more certainty over the issue price of the shares.
  3. There is potential for reaching a higher share price thus maximising capital raised.
  4. Tenders are more attractive to less sophisticated investors thus maximising potential investment.

Answer(s): C



  PDF
Viewing page 22 of 55
Viewing questions 106 - 110 out of 268 questions


Post your Comments and Discuss CIMA F2 exam prep with other Community members:

AI Tutor AI Tutor 👋 I’m here to help!