Free Access CIMA.F2.v2022-04-14.q70 Practice Test (Page 10)

Question 41

AB, a listed entity, prepared its financial statements to 31 December 20X7, in accordance with international accounting standards.
Which THREE of the following were disclosed as related parties of AB in its financial statements?

A.AB's bank that provides more than 60% of the entity's loan finance.

B.AB's main supplier, GH, who supplies more than 70% of AB's goods for manufacture.

C.The wife of the Managing Director of AB, to whom AB sold a motor vehicle in the year to 31 December 20X7.

D.AB's defined benefit pension plan.

E.ST, an entity that was jointly established by AB and CD, and that is accounted for as a joint venture in AB's financial statements to 31 December 20X7.

Question 42

What figure will be presented for "dividend paid to shareholders of GHI" in GHI's consolidated statement of changes in equity for the year ended 31 December 20X4?
Give your answer to the nearest $000.
$ ? 000

Question 43

Which of the following, in accordance with IFRS 2 Share-based Payments, are only applicable to the accounting treatment of cash settled rather than equity settled share-based payment schemes?
Select ALL that apply.

A.The credit entry in the financial statements is to equity.

B.The instruments in the scheme are remeasured at the end of each financial year to fair value.

C.The credit entry in the financial statements is to liabilities.

D.The expense of the scheme is spread to profit or loss over the vesting period.

E.The instruments in the scheme are measured at the fair value at the grant date of the scheme.

Question 44

Which THREE of the following would determine the functional currency of an overseas subsidiary in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates?

A.The currency which principally influences selling prices for goods and services.

B.The currency which the parent company uses to present its financial statements.

C.The currency that mainly influences labour, material and other costs.

D.The currency in which operating receipts are retained.

E.The currency which principally influences the choice of functional currency of the parent.

F.The currency in which all non-current assets are purchased and recognised.

Question 45

JK is seeking to raise finance for a project and the directors would prefer to take out a fixed rate bank loan repayable over the next 5 years. The project will increase the profit of JK even after taking into account the additional interest costs.
Which of the following statements about the use of a bank loan in this situation is true?

A.A bank loan has high issue costs compared to an issue of equity shares because it takes longer to arrange.

B.The interest on a bank loan is deducted from profit before dividends can be declared to equity shareholders each year.

C.Because the assets of a business belong to the equity shareholders, a bank loan should NOT be secured on the assets of the business.

D.In the long term servicing a bank loan is more expensive than servicing equity shares due to the higher risk for the lender.

Premium Bundle

Newest F2 Exam PDF Dumps shared by BraindumpsPass.com for Helping Passing F2 Exam! BraindumpsPass.com now offer the updated F2 exam dumps, the BraindumpsPass.com F2 exam questions have been updated and answers have been corrected get the latest BraindumpsPass.com F2 pdf dumps with Exam Engine here:

Access F2 Premium Version

(212 Q&As Dumps, 40%OFF Special Discount: Exam-Tests)

Latest Upload: 107Oracle.1Z0-1057-23.v2025-09-10.q47; 150Google.Professional-Cloud-Network-Engineer.v2025-09-09.q179; 131SAP.C-S4EWM-2023.v2025-09-08.q83; 155TheSecOpsGroup.CNSP.v2025-09-08.q20; 206CFAInstitute.ESG-Investing.v2025-09-08.q173; 153PECB.ISO-IEC-27001-Lead-Implementer.v2025-09-06.q132; 140Salesforce.Data-Architect.v2025-09-05.q216; 136Adobe.AD0-E605.v2025-09-05.q50; 176Nutanix.NCP-MCI-6.10.v2025-09-05.q55; 114Oracle.1z0-591.v2025-09-05.q104