Free CIMA F2 Exam Dumps Questions & Answers

JK is seeking to raise new finance through a rights issue of equity shares.
Which THREE of the following statements are correct?

• A.Shareholders must pay the full market price for shares offered in a rights issue.
• B.An alternative name for a rights issue is a scrip issue of shares.
• C.The administration costs associated with a rights issue are higher than those for an initial public offering.
• D.A rights issue will dilute an existing shareholder's control of the entity if they do not take up their rights.
• E.Shareholders' entitlement to rights may be sold on their behalf.
• F.Entities have the opportunity to underwrite a rights issue.

Which of the following statements about ST is true?

• A.The increase in administrative expenses is in line with the increase in revenues.
• B.The return on the investment in associate on an annual basis is 14%.
• C.The effective tax rate incurred by ST has remained largely the same.
• D.The ratio of distribution costs to revenue has increased significantly.

Which TWO of the following would be the primary disadvantages of producing the disclosures required in IFRS12 Disclosure of Interests in Other Entities?

• A.The disclosures will give competitors commercially sensitive information.
• B.The users of the financial statements may feel overburdened with information.
• C.The disclosures take time and therefore incur costs which erodes shareholder value.
• D.The disclosures will highlight the risks associated with interests in other entities.
• E.The auditors will have to audit these disclosures.

Calculate the exchange difference arising on the retranslation of goodwill on the acquisition in the consolidated statement of financial position of CD at 31 December 20X7.
Give your answer to the nearest $000.
$ ? 000

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

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