Introduction of Cima F2 Exam!

CIMA F2 is the Financial Management exam from the Chartered Institute of Management Accountants (CIMA). The exam covers topics such as financial planning and budgeting, financial analysis, working capital management, and capital structure and financing.

What is the Duration of Cima F2 Exam?

The CIMA F2 exam is a two-hour computer-based exam.

What are the Number of Questions Asked in Cima F2 Exam?

The CIMA F2 exam consists of 90 multiple-choice questions.

What is the Passing Score for Cima F2 Exam?

The passing score for the CIMA F2 Exam is 50 marks out of 100.

What is the Competency Level required for Cima F2 Exam?

The competency level required for the CIMA F2 exam is a good understanding of the fundamentals of financial management. Candidates must be able to apply their knowledge of financial principles and techniques to a wide range of business situations. They must also be able to interpret and analyse financial information and present their findings in an appropriate format.

What is the Question Format of Cima F2 Exam?

The CIMA F2 exam is a computer-based exam consisting of 100 objective test (MCQ) questions. Each question is followed by four possible answers, only one of which is the correct answer.

How Can You Take Cima F2 Exam?

The CIMA F2 exam can be taken either online or in a testing center. To take the exam online, you will need to register with CIMA and purchase the exam. Once you have done this, you will be able to access the exam online and take it at your own pace. To take the exam in a testing center, you will need to contact CIMA to find out where the nearest center is located and book an appointment. You will then need to attend the center on the day of the exam and take the exam in the allotted time.

What Language Cima F2 Exam is Offered?

The CIMA F2 exam is offered in English.

What is the Target Audience of Cima F2 Exam?

The CIMA F2 exam is designed for students who have some knowledge of accounting and business principles and who wish to pursue a career in management accounting. It is suitable for those who aspire to be accountants, finance professionals, or business analysts. It is also suitable for those who are looking to expand their business knowledge and apply it to the management of organisations.

What is the Average Salary of Cima F2 Certified in the Market?

The average salary of Cima F2 certified professionals varies widely by role, region, and experience, because it depends on the job the certification is combined with. Check current listings in your market for an up-to-date figure.

Who are the Testing Providers of Cima F2 Exam?

The Association of Chartered Certified Accountants (ACCA) is the only organization that can provide testing for the CIMA F2 exam. The ACCA is a global professional accounting body that offers the CIMA F2 exam as part of its Certified Accounting Technician (CAT) qualification.

What is the Recommended Experience for Cima F2 Exam?

The recommended experience for the CIMA F2 exam is a minimum of 1-2 years of relevant professional accounting experience. This can include working in public practice, industry, or commerce. It is also beneficial to have a good understanding of the professional environment and the CIMA Code of Ethics.

What is the Expected Retirement Date of Cima F2 Exam?

The Cima F2 exam is the current version of the exam, and Cima has not announced a retirement date for it. When Cima introduces a newer version, the retirement date for the older version is published on the Cima certification site.

What is the Difficulty Level of Cima F2 Exam?

The difficulty level of the CIMA F2 exam is considered to be moderate. It is designed to assess a candidate's knowledge and understanding of the fundamentals of financial accounting. The exam consists of 50 multiple choice questions, which must be completed in two hours.

What is the Roadmap / Track of Cima F2 Exam?

The CIMA F2 Exam certification roadmap is as follows: 1. Complete the CIMA F2 Exam Preparation Course. 2. Pass the CIMA F2 Exam. 3. Receive the CIMA F2 Exam Certification. 4. Maintain your CIMA F2 Exam Certification by completing the required Continuing Professional Development (CPD) activities. 5. Renew your CIMA F2 Exam Certification every three years.

What are the Topics Cima F2 Exam Covers?

The CIMA F2 exam covers the following topics: 1. Financial Reporting: This topic covers the fundamentals of financial reporting, including the accounting equation, the balance sheet, the income statement, and the statement of cash flows. It also covers the principles of accounting and the regulatory framework. 2. Management Accounting: This topic covers the fundamentals of management accounting, including cost management, budgeting, and decision-making. It also covers the principles of cost and management accounting, and the use of financial information to support decision-making. 3. Financial Strategy: This topic covers the fundamentals of financial strategy, including capital structure, financing, and risk management. It also covers the principles of corporate finance and the development of a financial strategy. 4. Ethics and Professionalism: This topic covers the fundamentals of professional ethics, including the principles of ethical behavior and the role of the professional accountant. It also covers the role of the professional accountant in the business environment

What are the Sample Questions of Cima F2 Exam?

1. What are the main principles of financial reporting under International Financial Reporting Standards (IFRS)? 2. How do you calculate the cost of equity capital in a discounted cash flow model? 3. What are the key differences between the Accounting Standards Board (ASB) and International Accounting Standards Board (IASB) frameworks? 4. Explain the concept of impairment of assets under IFRS. 5. Describe the process for preparing a statement of financial position under IFRS. 6. What is the purpose of a budget and how can it be used to support effective financial management? 7. How do you calculate the weighted average cost of capital (WACC)? 8. What are the key differences between the cash flow statement and the statement of changes in equity? 9. How do you calculate the internal rate of return (IRR) of an investment? 10. What are the main principles of corporate governance?

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Free F2 – Advanced Financial Reporting Practice Test Question

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Showing 1–15 of 15 questions

Question 1

On 1 January 20X6 AB, a listed entity, had 10,000,000 $1 ordinary shares in issue. On 1 April 20X6 AB issued 3,000,000 $1 ordinary shares at their full market price. AB's profit was reported as $1,100,000 after charging corporate income tax of $500,000.

Place the correct values for profit and weighted average number of shares in the boxes below that will be used to calculate AB's earnings per share for the year to 31 December 20X6.

Answer is in the explanation below.

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Question 2

EFG is preparing its financial statements to 31 March 20X8. During the year ended 31 March 20X7, EFG purchased a piece of land for $1 million which is used as the staff car park. EFG has a policy of revaluing land, in accordance with International Accounting Standards, and at 31 March 20X8, accounted for a substantial increase in its value.

Revenue and operating profit has remained constant over the 2 years.

When comparing EFG's financial statements for the year ended 31 March 20X7 with those of 20X8, which THREE of the following would be expected?

Select all that apply, then click Submit answer.

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Increase in profit before tax.
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Increase in other comprehensive income.
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Increase in return on capital employed.
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Decrease in return on capital employed.
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Increase in net asset turnover.
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Decrease in net asset turnover.

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Question 3

Which THREE of the following statements are true in relation to financial assets designated as fair value through profit or loss under IAS 39 Financial Instruments: Recognition and Measurement?

Select all that apply, then click Submit answer.

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Shares in another entity held for short term trading purposes fall within this category.
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Transaction costs in relation to these assets are expensed to profit or loss on acquisition.
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Transaction costs in relation to these assets are added to the initial cost of the asset on acquisition.
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The gain or loss on the subsequent measurement of these assets is recorded within other comprehensive income.
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The gain or loss on the subsequent measurement of these assets is recorded within profit for the year.
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Once the asset has been subsequently measured to fair value an impairment review is undertaken.

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Question 4

Which THREE of the following statements about preference shares are true?

Select all that apply, then click Submit answer.

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For an investor, preference shares carry more risk than ordinary shares.
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Unlike ordinary shares, preference shares may be cumulative.
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The characteristics of preference shares are closer to debt than equity.
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Preference shares cannot be issued as redeemable shares.
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Preference shareholders receive their dividend entitlement before the equity shareholders.
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Preference shareholders rank below the equity shareholders in a winding up.

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Question 5

EF acquired a copy machine under a three-year operating lease. EF will pay nothing in year one and then will pay $6,000 in years two and three. The estimated economic useful life of the machine is six years.

Which THREE of the following statements are true in respect of how EF will account for its use of the machine and the associated operating lease payments?

Select all that apply, then click Submit answer.

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An asset of $12,000 will be included in EF's property, plant and equipment at the start of the lease.
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EF will record no expense in year one in respect of the operating lease charges for this machine.
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EF will record a credit to bank of $6,000 in year two.
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EF will include an accrual of $4,000 at the end of year one in respect of the lease payments.
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EF will charge $4,000 to profit or loss in each of the three years in respect of this operating lease.
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EF will include an accrual of $6,000 at the end of year one in respect of the lease payments.

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Question 6

Which THREE of the following statements are true in relation to financial assets designated as fair value through profit or loss under IAS 39 Financial Instruments: Recognition and Measurement?

Select all that apply, then click Submit answer.

○
Shares in another entity held for short term trading purposes fall within this category.
○
Transaction costs in relation to these assets are expensed to profit or loss on acquisition.
○
Transaction costs in relation to these assets are added to the initial cost of the asset on acquisition.
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The gain or loss on the subsequent measurement of these assets is recorded within other comprehensive income.
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The gain or loss on the subsequent measurement of these assets is recorded within profit for the year.
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Once the asset has been subsequently measured to fair value an impairment review is undertaken.

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Question 7

The yield to maturity of a redeemable bond is calculated as the internal rate of return of the relevant cash flows associated with the bond.

Which TWO of the following are considered relevant cash flows in this calculation?

Select all that apply, then click Submit answer.

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The annual interest payments net of tax relief.
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The redemption value of the bond at the date of redemption.
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The market value of the bond now.
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The nominal value of the bond now.
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The value of the conversion premium on conversion to equity shares.

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Question 8

Which THREE of the following actions should improve the cash position of an entity?

Select all that apply, then click Submit answer.

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Substituting a bonus issue for the final dividend.
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Selling non current assets and leasing them back under operating leases.
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Implementing an efficient inventory ordering system.
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Revaluing all non-current assets.
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Revising the depreciation policy of non-current assets.
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Offering extended credit terms to existing customers.

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Question 9

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?

Select an option, then click Submit answer.

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In 20X5 the average interest rate on borrowing decreased compared to 20X4.
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In 20X4 an onerous contract was provided for and this provision did not change in 20X5.
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In 20X5 the increase in value of MNO's head office was reflected in the financial statements.
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In 20X4 an unused building was sold at a price in excess of its carrying value.

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Question 10

What figure will be presented in GHI's consolidated statement of changes in equity for the year ended 31 December 20X4, in respect of dividends paid to non-controlling interest?

Select an option, then click Submit answer.

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$25,000
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$125,000
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$100,000
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$0

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Question 11

LM granted 100 share options to each of its 400 employees on 1 January 20X7. The options will only vest if employees remain with LM for 3 years from the grant date. The fair value of each share option was $5 on 1 January 20X7.

20 employees left in the year to 31 December 20X7 and at that date it was estimated that a further 35 would leave over the following two years.

Which of the following journal entries did LM process to account for the share options in the year to 31 December 20X7, in accordance with IFRS2 Share-based Payments?

Select an option, then click Submit answer.

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Dr Profit or loss $57,500 ; Cr Other reserves within equity $57,500
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Dr Profit or loss $57,500 ; Cr Liabilities $57,500
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Dr Profit or loss $172,500 ; Cr Other reserves within equity $172,500
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Dr Profit or loss $172,500 ; Cr Liabilities $172,500

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Question 12

AB sold the majority of its operating equipment to LM for cash on 30 December 20X9 and then immediately leased it back under an operating lease.

AB used the cash proceeds from the sale to reduce its long term borrowings significantly. No early repayment charge was levied by the lender.

Which of the following statements is true in respect of AB's ratios calculated at 31 December 20X9?

Select an option, then click Submit answer.

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AB's return on capital employed would be lower as a result of this sale being recorded.
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AB's current ratio would be lower as a result of this sale being recorded.
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AB's non-current asset turnover would be lower as a result of this sale being recorded.
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AB's gearing ratio would be lower as a result of this sale being recorded.

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Question 13

LM acquired 80% of the equity shares of ST when ST's retained earnings were $50 million. The fair value of the net assets of ST included a contingent liability with a fair value of $100 million at the date of acquisition and a fair value of $40 million at 31 December 20X6. No other fair value adjustments were required at the date of acquisition.

LM and ST had retained earnings of $200 million and $80 million respectively at 31 December 20X6.

The consolidated retained earnings of LM at 31 December 20X6 were:

Select an option, then click Submit answer.

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$164 million
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$176 million
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$272 million
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$284 million

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Question 14

GH is a listed entity which holds equity shares in one subsidiary and one associate.

Information extracted from the most recent financial statements is as follows:

What is the interest cover for the year?

Select an option, then click Submit answer.

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9.6 times
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10.7 times
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11.7 times
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8.5 times

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Question 15

Which of the following would cause a deferred tax balance to be included in the statement of financial position for an entity?

Select an option, then click Submit answer.

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Expenses in the statement of profit or loss which are not allowable for tax creating a permanent difference.
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The acquisition of land for which there is no tax depreciation.
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The acquisition of plant and equipment a year ago where the tax depreciation rate is different to the accounting depreciation rate.
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Impairment of goodwill that arose on the acquisition of a subsidiary entity.

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About the F2 Free Practice Test

This page holds a free practice test for the F2 - Advanced Financial Reporting (F2) certification from Cima. The 15 questions come free from the full 235-question Study4Pass practice set — a quick, honest check of where you stand. The free sample includes 7 single-answer, 7 multiple-answer and 1 drag-and-drop questions — the same mix of formats you will meet in the full set. The set follows the real exam’s spread of topics: Financial Reporting, Management Accounting, Financial Strategy and Ethics and Professionalism. CIMA F2 is the Financial Management exam from the Chartered Institute of Management Accountants (CIMA).

The CIMA F2 exam is designed for students who have some knowledge of accounting and business principles and who wish to pursue a career in management accounting. To take the CIMA F2 exam, you must have passed CIMA E1 and CIMA P1 exams.

Certification: F2 - Advanced Financial Reporting (F2)
Vendor: Cima
Free on this page: 15 practice questions with answers and explanations
Full practice set: 235 questions

Work through the questions one at a time and read every explanation, even for the ones you get right — the reasoning behind an answer is what the real exam tests. If one area keeps costing you marks, you have found exactly what to revise before exam day.

Think of the result as a map, not a verdict. The questions you miss point straight at the topics that need work, and the explanations tell you why the correct option wins. Candidates who loop through that cycle — practise, review the reasoning, re-test — walk into the real exam having already seen their weak spots and fixed them.

Inside the full F2 practice set:

All 235 questions with answers and explanations
Timed Exam Simulation that mirrors the real exam pressure
Topic Training to drill one domain at a time
Ask AI for More Explanation on every question
Flag questions and review them before you finish

How to use this F2 free practice test

There is no clock and no account needed. Answer each question, check the result, and read the explanation before moving on. For anything that still feels unclear, Ask AI is built into this AI-Enabled practice test — it explains the concept behind the question so the next one like it gets easier. Ready for more? The full 235-question set adds a timed Exam Simulation mode, topic training for your weak areas, and a flagged-question review, so you can practise the way the real exam feels.

What to study for each F2 domain

Financial Reporting — This topic covers the fundamentals of financial reporting, including the accounting equation, the balance sheet, the income statement, and the statement of cash flows.
Management Accounting — This topic covers the fundamentals of management accounting, including cost management, budgeting, and decision-making.
Financial Strategy — This topic covers the fundamentals of financial strategy, including capital structure, financing, and risk management.
Ethics and Professionalism — This topic covers the fundamentals of professional ethics, including the principles of ethical behavior and the role of the professional accountant.

F2 practice test — quick questions

Is this F2 practice test free?

Yes — the 15 questions on this page are completely free, with no signup and no payment details needed.

How many questions are in the full F2 set?

235 questions. The 15 free questions above are a sample of that full set, in the same style and topic balance.

Does the free test show the answers?

Yes — every question shows the correct answer with an explanation, and Ask AI can explain the concept behind a question in plain words if you want to go deeper.