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100+ Free CIMA F2 Practice Questions

Pass your CIMA Management Level F2: Advanced Financial Reporting exam on the first try — instant access, no signup required.

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Which of the following would generally IMPROVE a company's current ratio?

A
B
C
D
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ArticleCIMA 2026: Portfolio Construction and Consulting Prep7 min read
2026 Statistics

Key Facts: CIMA F2 Exam

~60

Objective-Test Questions

AICPA & CIMA Management Blueprint

90 min

Exam Duration

AICPA & CIMA Management Blueprint

100/150

Scaled Pass Mark

AICPA & CIMA

60%

Reporting Standards + Groups Weight

2026-2027 Management Blueprint

25%

Analysing Statements Weight

2026-2027 Management Blueprint

On demand

Pearson VUE Booking

AICPA & CIMA

CIMA F2 is a 90-minute computer-based objective test of approximately 60 questions taken on demand at Pearson VUE. The 2026-2027 Management blueprint weights the syllabus as financing capital projects 15%, financial reporting standards including group accounts 60%, and analysing financial statements 25%. Objective tests are reported on a 0-150 scale with a pass mark of 100. The exam uses multiple choice, multiple response, number-entry and drag-and-drop items, all marked all-or-nothing. CIMA does not publish a single global sitting fee or a routine F2 pass rate.

Sample CIMA F2 Practice Questions

Try these sample questions to test your CIMA F2 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which type of long-term finance gives the holder ownership rights and a residual claim on the assets of a company after all liabilities are settled?
A.Ordinary (equity) shares
B.Redeemable debentures
C.Bank term loan
D.Convertible loan notes prior to conversion
Explanation: Ordinary shares represent the residual equity interest. Shareholders rank last on a winding up but have a claim on whatever assets remain after all creditors are paid, plus voting and dividend rights.
2A company issues a 5% bond at a discount. Under IFRS 9, at what amount is the bond liability initially recognised?
A.Face (nominal) value of the bond
B.Fair value of consideration received, net of transaction costs
C.Face value plus accrued interest
D.Present value of coupons only, excluding the redemption amount
Explanation: Under IFRS 9 a financial liability measured at amortised cost is initially recognised at its fair value (normally the net proceeds received) less directly attributable transaction costs. It is then measured using the effective interest method.
3A bond is issued for net proceeds of $94,000 (nominal $100,000), pays a 4% coupon annually and has an effective interest rate of 7%. What is the finance cost charged to profit or loss in year 1?
A.$4,700
B.$4,000
C.$6,580
D.$7,000
Explanation: Under the effective interest method the finance cost equals the opening carrying amount times the effective rate: $94,000 x 7% = $6,580. The $4,000 coupon is the cash paid; the difference ($2,580) increases the carrying amount.
4Which ratio is most commonly used to assess the financial gearing (leverage) of a company financed by both debt and equity?
A.Inventory turnover
B.Dividend cover
C.Current ratio
D.Debt to equity ratio
Explanation: Financial gearing measures the relationship between debt and equity finance. The debt to equity ratio (or debt as a percentage of debt plus equity) directly captures how reliant a company is on borrowing, and hence its financial risk.
5A company has equity of $400m and debt of $100m. Cost of equity is 12% and the after-tax cost of debt is 6%. What is the weighted average cost of capital (WACC)?
A.10.8%
B.11.4%
C.18.0%
D.9.0%
Explanation: WACC weights each source by its market proportion: (400/500 x 12%) + (100/500 x 6%) = 9.6% + 1.2% = 10.8%. WACC is used as the discount rate for projects of average business and financial risk.
6Under IAS 32, an instrument that obliges the issuer to deliver cash (for example a redeemable preference share with a mandatory redemption) is classified as:
A.Equity
B.A financial liability
C.A compound instrument split equally
D.Other comprehensive income
Explanation: IAS 32 classifies instruments by substance. A contractual obligation to deliver cash creates a financial liability, so a mandatorily redeemable preference share is debt, and its 'dividends' are presented as a finance cost.
7A convertible loan note is a compound financial instrument. Under IAS 32, how is the equity component measured on initial recognition?
A.At fair value of the conversion option, with the liability as the balancing figure
B.At the full proceeds of the issue
C.As the residual after deducting the fair value of the liability component from total proceeds
D.At the nominal value of the conversion shares
Explanation: IAS 32 requires the liability component to be measured first, at the present value of cash flows discounted at the market rate for similar debt without conversion. The equity component is the residual: total proceeds less the liability fair value.
8Which of the following is a key advantage of debt finance over equity finance for funding a capital project?
A.It never has to be repaid
B.It dilutes existing shareholders' control
C.It always reduces financial risk
D.Interest is generally tax-deductible, reducing the effective cost
Explanation: Interest on debt is normally an allowable deduction for tax, creating a tax shield that lowers the after-tax cost of debt below the pre-tax rate. Debt is therefore often cheaper than equity, though it raises financial risk.
9A company makes a 1-for-4 rights issue at $2.00 when the cum-rights market price is $3.00. What is the theoretical ex-rights price (TERP) per share?
A.$2.80
B.$2.50
C.$3.00
D.$2.20
Explanation: Take 4 existing shares at $3.00 = $12.00 plus 1 new share at $2.00 = $2.00, giving $14.00 for 5 shares. TERP = $14.00 / 5 = $2.80 per share.
10Under IFRS 9, a debt instrument is measured at amortised cost only if it passes two tests. One is the contractual cash flow characteristics (SPPI) test. What is the other?
A.The fair value option election test
B.The business model test (held to collect contractual cash flows)
C.The hedge effectiveness test
D.The impairment trigger test
Explanation: IFRS 9 classifies debt assets using two tests: the business model (held to collect) and whether cash flows are solely payments of principal and interest (SPPI). Passing both gives amortised cost measurement.

About the CIMA F2 Exam

CIMA F2 Advanced Financial Reporting is a Management-level objective test in the CGMA Professional Qualification. It covers financing capital projects, a broad range of IFRS and IAS reporting standards including group accounts (consolidations, associates and joint ventures), and the analysis and interpretation of financial statements using ratios.

Questions

60 scored questions

Time Limit

90 minutes

Passing Score

Scaled score of 100 out of 150

Exam Fee

Set regionally in local currency at booking; CIMA does not publish a single global F2 sitting fee (AICPA & CIMA / Pearson VUE)

CIMA F2 Exam Content Outline

15%

Financing capital projects

Sources of long-term debt and equity finance, the cost of debt and equity, WACC, IAS 32 liability and equity classification, compound instruments, and IFRS 9 measurement of financing instruments.

60%

Financial reporting standards (including group accounts)

A broad range of IFRS and IAS standards including IFRS 3, 9, 10, 11, 15 and 16, IAS 12, 21, 36 and 37, plus the preparation of consolidated statements with goodwill, NCI, associates, joint ventures, and disposals.

25%

Analysing financial statements

Interpretation of performance, position and cash flows using profitability, liquidity, gearing, working-capital and investor ratios, the cash operating cycle, and the limitations of ratio analysis.

How to Pass the CIMA F2 Exam

What You Need to Know

  • Passing score: Scaled score of 100 out of 150
  • Exam length: 60 questions
  • Time limit: 90 minutes
  • Exam fee: Set regionally in local currency at booking; CIMA does not publish a single global F2 sitting fee

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CIMA F2 Study Tips from Top Performers

1Allocate the most time to financial reporting standards and group accounts, which together make up about 60% of the exam.
2Practise full consolidation workings (goodwill, NCI, fair value adjustments, intra-group eliminations) until they are second nature.
3Learn the recognition and measurement rules for IFRS 15, IFRS 16, IFRS 9 and IAS 12, as these recur across objective tests.
4Drill ratio calculations and, crucially, their interpretation, because analysing financial statements is 25% of the marks.
5Remember objective tests are marked all-or-nothing, so check every element of multiple-response and number-entry items before submitting.
6Sit timed mock objective tests to build speed for roughly 60 questions in 90 minutes.

Frequently Asked Questions

How many questions are on the CIMA F2 exam?

The CIMA F2 objective test contains approximately 60 questions to be completed in a single 90-minute computer-based session. Item types include multiple choice, multiple response, number-entry (fill in the blank) and drag-and-drop.

What is the CIMA F2 pass mark?

CIMA objective tests, including F2, are reported on a scaled score from 0 to 150, and the pass mark is a scaled score of 100. Questions are marked all-or-nothing, so every element of a multi-part item must be correct.

What are the CIMA F2 syllabus weightings?

Under the 2026-2027 Management blueprint, F2 is weighted as financing capital projects 15%, financial reporting standards including group accounts 60%, and analysing financial statements 25%.

What standards does CIMA F2 cover?

F2 covers a wide range of IFRS and IAS standards, including IFRS 3, 9, 10, 11, 15 and 16, and IAS 12, 21, 36 and 37, along with the preparation and interpretation of consolidated group financial statements.

How much does CIMA F2 cost?

CIMA does not publish a single global F2 fee. The objective-test sitting fee is set regionally in local currency at the time of booking, and candidates also pay an annual subscription and any optional tuition costs.

Is CIMA F2 taken on demand?

Yes. The F2 objective test is an on-demand computer-based exam booked through Pearson VUE, taken at a test centre or via approved online proctoring, so candidates do not have to wait for fixed exam windows.

How long should I study for CIMA F2?

Most candidates spend around 130 to 150 study hours on F2, reflecting its depth in consolidations and IFRS measurement. A 10 to 14 week plan alongside work is common.

Can I retake CIMA F2 if I fail?

Yes. CIMA objective tests can be retaken; you must wait before rebooking and pay the sitting fee again for each attempt. There is no fixed annual attempt cap for objective tests.