Summer Special Sale Limited Time 60% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 2493360325

Good News !!! F2 F2 Advanced Financial Reporting is now Stable and With Pass Result

F2 Practice Exam Questions and Answers

F2 Advanced Financial Reporting

Last Update 2 days ago
Total Questions : 268

F2 Advanced Financial Reporting is stable now with all latest exam questions are added 2 days ago. Incorporating F2 practice exam questions into your study plan is more than just a preparation strategy.

F2 exam questions often include scenarios and problem-solving exercises that mirror real-world challenges. Working through F2 dumps allows you to practice pacing yourself, ensuring that you can complete all F2 Advanced Financial Reporting practice test within the allotted time frame.

F2 PDF

F2 PDF (Printable)
$140
$350

F2 Testing Engine

F2 PDF (Printable)
$149.6
$374

F2 PDF + Testing Engine

F2 PDF (Printable)
Question # 1

Mr D, a CIMA qualified accountant, is working on the preparation of a long term profit forecast required by the local stock market prior to a new share issue of equity shares. At the most recent board meeting the directors requested that the forecast be inflated. In Mr D's view this would grossly overestimate the forecast profit. The board intends to publish the revised inflated forecast.

Which THREE of the following are the ethical options available to Mr D in this situation?

Options:

A.  

Consider resignation of his post as accountant.

B.  

Adjust the figures in line with the board's request as this is a forecast and not the financial statements.

C.  

Discuss the situation with his line manager.

D.  

Consider reporting the situation to the appropriate authorities.

E.  

Delegate the work to a subordinate.

F.  

Submit the original forecast without the board's approval.

Discussion 0
Question # 2

XY purchased $100,000 of quoted 8% bonds in the current year which it intends to hold until redemption.

Which of the following identifies the correct classification and subsequent measurement basis for this financial instrument?

Options:

A.  

A loans and receivables financial asset subsequently measured at fair value with gains and losses in reserves.

B.  

A held to maturity financial asset subsequently measured at amortised cost.

C.  

A loans and receivables financial asset subsequently measured at amortised cost.

D.  

A held to maturity financial asset subsequently measured at fair value with gains and losses in reserves.

Discussion 0
Question # 3

XY has in issue a 6% convertible bond which is redeemable at par or convertible into equity shares in one year's time.  The conversion terms are 20 equity shares for each $100 of convertible bond. The conversion value in one year's time is expected to be $105 per $100 nominal of the bond based on the current share price of $5.25.

Which of the following statements about the bond is correct?

Options:

A.  

The yield to maturity of the convertible bond is a constant 6%.

B.  

The bond will be converted into equity shares in one year's time if the share price does not change.

C.  

XY's post tax cost of debt for the convertible bond will be higher than the yield to maturity.

D.  

If the bond is redeemed rather than converted that means that the investor will receive $105 for each $100 of nominal value.

Discussion 0
Question # 4

FG and RS operate in the same retail sector within the same country and are of a similar size. The following ratios have been calculated based on the financial statements for the year ended 30 September 20X4:

  Question # 4

Which of the following factors would limit the usefulness of these ratios as a basis for assessing the comparative performances of FG and RS?

Options:

A.  

RS has a higher level of borrowings and associated finance costs.

B.  

RS sold a piece of land for a sum much greater than its carrying value.

C.  

RS operates at the low margin end of the market whilst FG operates at the high margin end.

D.  

FG has a higher level of deferred tax liabilities than RS.

Discussion 0
Question # 5

Which of the following reduce the usefulness of ratio analysis when comparing entities that operate in the same industry? Select ALL that apply.

Options:

A.  

The revenue figure being aggregated from many different activities and sources.

B.  

Accounting estimates in respect of depreciation being different between entities.

C.  

The effect of a material and unusual item being disclosed separately in the notes.

D.  

An entity adopting a policy of revaluing its non current assets.

E.  

Ratio calculations being based on historical information.

F.  

Ratios being quick and easy to calculate.

Discussion 0
Question # 6

ST has sold its main office property, which had a carrying value of $360,000, to AB, a property management entity.

The property was sold for $400,000 which is equal to its fair value and was immediately leased back under an operating lease agreement. 

Which of the following journals will record this transaction?

Question # 6

Options:

A.  

Option A

B.  

Option B

C.  

Option C

D.  

Option D

Discussion 0
Question # 7

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:

Discussion 0
Question # 8

The basic earning per share computed by a company for year ended 31st March 20X7 is £2 per share. The company had certain convertible debentures outstanding as on 31st March 20X7. The conversion of

debentures to equity shares would result in the earnings per share to be £2.2. Which of the following should the company disclose?

Options:

A.  

Basic earnings per share only

B.  

Diluted earnings per share only

C.  

Both basic and diluted earnings per share

D.  

Neither basic nor diluted earnings per share

Discussion 0
Question # 9

GH's financial statements show the following:

  

What is the value of the dividend received from the associate to be included in GH's consolidated statement of cash flows for the year?

Give your answer to the nearest $000.

 $ ? 000

Options:

Discussion 0
Question # 10

LM acquired 15% of the equity share capital of ST on 1 January 20X6 for $18 million.  LM acquired a further 50% of the equity share capital of ST for $50 million on 1 January 20X7 when the fair value of ST's net assets was $82 million.  The original 15% investment in ST had a fair value of $20 million at 1 January 20X7.  The non controlling interest in ST was measured at its fair value of $30 million at the date control in ST was acquired.  

Calculate the goodwill arising on the acquisition of ST that LM included in its consolidated financial statements at 31 December 20X7.

Give your answer to the nearest $ million.

$ ?  million

Options:

Discussion 0
Get F2 dumps and pass your exam in 24 hours!

Free Exams Sample Questions