ACCA financial management kaplan fm exam kit

ACCA Exam-focused Kaplan’s vast classroom experience helps many students pass first time The books are designed to cover the whole syllabus and they reflect how topics are taught in the classroom, focusing on what will be required of you in the exam KAPLAN PUBLISHING UK Student-friendly Using accessible language and engaging formats to help you understand more complex areas, Kaplan simplifies the learning process to make it easier for you to succeed Written by our expert tutors PAPER F9 All Kaplan study materials are written by our subject specialists, experienced tutors who teach the paper so they know what works for students and how best to deliver it Innovative solutions EXAM KIT SEPTEMBER 2017 TO JUNE 2018 SITTINGS More than just books, our study materials are supported by a wealth of free online resources, including testing and course assessments All accessible from our online learning environment MyKaplan All the resources have been designed to keep you on your study plan and help you pass first time ACCA THE ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS FINANCIAL MANAGEMENT (FM) 781784 158330 FINANCIAL MANAGEMENT (FM) ISBN 978-1-78415-833-0 EXAM KIT - VALID FOR SEPTEMBER 2018, DECEMBER 2018, MARCH 2019AND JUNE 2019 EXAMINATION SITTINGS SUITABLE FOR BOTH PAPER-BASED AND COMPUTER-BASED EXAMS IN PARTNERSHIP WITH ACCA Applied Skills Financial Management (FM) EXAM KIT FM : F IN AN CI AL M AN A GE M E N T British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by: Kaplan Publishing UK Unit The Business Centre Molly Millar’s Lane Wokingham Berkshire RG41 2QZ ISBN: 978-1-78740-106-8 © Kaplan Financial Limited, 2018 Printed and bound in Great Britain The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such No reliance should be placed on the content as the basis for any investment or other decision or in connection with any advice given to third parties Please consult your appropriate professional adviser as necessary Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to any person in respect of any losses or other claims, whether direct, indirect, incidental, consequential or otherwise arising in relation to the use of such materials All rights reserved No part of this examination may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior permission from Kaplan Publishing Acknowledgements These materials are reviewed by the ACCA examining team The objective of the review is to ensure that the material properly covers the syllabus and study guide outcomes, used by the examining team in setting the exams, in the appropriate breadth and depth The review does not ensure that every eventuality, combination or application of examinable topics is addressed by the ACCA Approved Content Nor does the review comprise a detailed technical check of the content as the Approved Content Provider has its own quality assurance processes in place in this respect The past ACCA examination questions are the copyright of the Association of Chartered Certified Accountants The original answers to the questions from June 1994 onwards were produced by the examiners themselves and have been adapted by Kaplan Publishing We are grateful to the Chartered Institute of Management Accountants and the Institute of Chartered Accountants in England and Wales for permission to reproduce past examination questions The answers have been prepared by Kaplan Publishing P KA PL AN P U BLI SH IN G CONTENTS Page Index to questions and answers P.5 Analysis of past exams P.10 Exam Technique P.12 Exam-specific information P.14 Kaplan’s recommended revision approach P.17 The Kaplan Financial Management revision plan P.19 Mathematical tables and formulae sheet P.25 Section Objective Test Questions – Section A Objective Test Case Study Questions – Section B 49 Constructed Response (Long) Practice Questions – Section C 95 Answers to Objective Test Questions – Section A 159 Answers to Objective Test Case Study Questions – Section B 187 Answers to Constructed Response (Long) Practice Questions – Section C 215 Specimen Exam 451 KA PL AN P U BLI SH IN G P FM : F IN AN CI AL M AN A GE M E N T Key features in this edition In addition to providing a wide ranging bank of real past exam questions, we have also included in this edition: • An analysis of all of the recent examinations • Exam-specific information and advice on exam technique • Our recommended approach to make your revision for this particular subject as effective as possible • This includes step by step guidance on how best to use our Kaplan material (Study text, pocket notes and exam kit) at this stage in your studies • Enhanced tutorial answers packed with specific key answer tips, technical tutorial notes and exam technique tips from our experienced tutors • Complementary online resources including full tutor debriefs to point you in the right direction when you get stuck You will find a wealth of other resources to help you with your studies on the following sites: www.mykaplan.co.uk www.kaplan.co.uk/insights/study-tips www.accaglobal.com/students/ Quality and accuracy are of the utmost importance to us so if you spot an error in any of our products, please send an email to mykaplanreporting@kaplan.com with full details, or follow the link to the feedback form in MyKaplan Our Quality Co-ordinator will work with our technical team to verify the error and take action to ensure it is corrected in future editions P KA PL AN P U BLI SH IN G INDEX TO QUESTIONS AND ANSWERS INTRODUCTION Following the introduction of the revised exam format, all previous ACCA constructed response (long) exam questions within this kit have been adapted The specimen exam is included at the end of the kit KEY TO THE INDEX EXAM ENHANCEMENTS We have added the following enhancements to the answers in this exam kit: Key answer tips All answers include key answer tips to help your understanding of each question Tutorial note Many answers include more tutorial notes to explain some of the technical points in more detail Top tutor tips For selected questions, we 'walk through the answer' giving guidance on how to approach the questions with helpful ‘tips from a top tutor’, together with technical tutor notes These answers are indicated with the 'footsteps' icon in the index Within the questions in the exam kit you will see the following icons, shown in the question requirements:  = word processing  = spreadsheet The icons highlighting the constructed response workspace tool alongside some of the questions are for guidance only – it is important to recognise that each question is different and that the answer space provided by ACCA in the exam is determined by both the technical content of the question as well as the quality assurance processes ACCA undertakes to ensure the student is provided with the most appropriate type of workspace KA PL AN P U BLI SH IN G P FM : F IN AN CI AL M AN A GE M E N T ONLINE ENHANCEMENTS Question debrief For selected questions, we recommend that they are to be completed in full exam conditions (i.e properly timed in a closed book environment) In addition to the examiner’s technical answer, enhanced with key answer tips and tutorial notes in this exam kit, online you can find an answer debrief by a top tutor that: • works through the question in full • points out how to approach the question • shows how to ensure that the easy marks are obtained as quickly as possible, and • emphasises how to tackle exam questions and exam technique These questions are indicated with the 'clock' icon in the index Online answer debriefs will be available on MyKaplan at: www.MyKaplan.co.uk P KA PL AN P U BLI SH IN G IN DE X TO Q UE S T ION S A N D A N S WE R S Page number Question Answer SECTION A-TYPE QUESTIONS Financial Management Function Financial Management Environment Working Capital Management Investment Appraisal Business Finance and Cost of Capital Business Valuations Risk Management 12 19 26 35 42 159 161 163 167 172 178 182 49 52 60 69 76 86 187 189 193 199 203 209 SECTION B-TYPE QUESTIONS Financial Management Function and Environment Working Capital Management Investment Appraisal Business Finance and Cost of Capital Business Valuations Risk Management SECTION C-TYPE QUESTIONS FM FUNCTION AND ENVIRONMENT – PRACTICE QUESTIONS UUL Co CCC Neighbouring countries RZP Co 95 96 97 98 215 217 220 222 − − − − JJG Co 99 225 June 09 News for you 100 229 − WORKING CAPITAL MANAGEMENT – EXAM STYLE QUESTIONS Gorwa Co FLG Co 101 102 231 235 Dec 08 June 08 PKA Co 103 238 Dec 07 10 11 12 KXP Co Ulnad APX Co 104 104 105 243 247 250 Dec 12 − Dec 09 13 HGR Co 106 255 June 09 14 15 Anjo ZSE Co 108 109 260 261 − June 10 16 PNP plc 110 266 June 07 17 Plot Co 111 270 Dec 13 18 WQZ Co 112 273 Dec 10 19 Flit Co 113 277 Dec 14 20 Nesud Co 114 282 Sep 16 KA PL AN P U BLI SH IN G P FM : F IN AN CI AL M AN A GE M E N T Page number Question Answer INVESTMENT APPRAISAL – EXAM STYLE QUESTIONS 21 Armcliff Co 115 285 − 22 23 24 25 26 27 Warden Co Dairy Co Investment appraisal Darn Co Charm Inc Play Co 116 117 118 118 119 120 287 292 294 299 302 305 Dec 11 − − Dec 13 − − 28 Duo Co 121 308 Dec 07 29 30 31 32 33 34 35 36 37 38 OKM Co BRT Co CJ Co Basril ASOP Co Degnis Co Hraxin Co Hebac Co Vyxyn Co Dysxa Co 122 123 124 125 125 126 127 128 129 130 313 318 321 326 329 332 337 341 344 350 June 10 June 11 Dec 10 − Dec 09 Jun 16 Jun 15 Sep 16 Mar/Jun 17 Dec 16 BUSINESS FINANCE AND COST OF CAPITAL – EXAM STYLE QUESTIONS 39 40 41 Fence Co Bar Co Nugfer 131 131 133 354 358 362 June 14 Dec 11 Dec 10 42 Spot Co 134 367 Dec 13 43 Echo Co 134 369 Dec 07 44 45 Pavlon Arwin 136 137 375 377 − − 46 AMH Co 138 380 June 13 47 GTK Inc 139 384 June 07 48 TFR 140 387 June 07 49 GXG Co 141 389 June 13 50 51 52 53 54 55 Ill colleague AQR Co Card Co Dinla Co Tinep Co Gadner Co 142 143 144 144 145 146 392 394 398 400 404 408 − June 11 Dec 13 Mar 16 Dec 14 Dec 16 P KA PL AN P U BLI SH IN G IN DE X TO Q UE S T ION S A N D A N S WE R S BUSINESS VALUATIONS – PRACTICE QUESTIONS 56 Close Co 147 412 Dec 11 57 58 59 NN Co Corhig Co MAT Co 148 149 150 416 419 423 Dec 10 June 12 − 60 THP Co 151 426 June 08 61 Dartig Co 152 431 Dec 08 62 Phobis 153 435 Dec 07 RISK MANAGEMENT – PRACTICE QUESTIONS 63 Nedwen 154 438 − 64 Exporters plc 155 441 − 65 66 CC Co Plam Co 156 157 443 446 − Mar 16 KA PL AN P U BLI SH IN G P SPE CI ME N E XA M: Q U E ST ION S Q34 KA PL AN P U BLI SH IN G 47 FM : FIN AN CI AL MA N A GE ME N T Q35 Q36 47 KA PL AN P U BLI SH IN G Section ANSWERS TO SPECIMEN EXAM QUESTIONS KA PL AN P U BLI SH IN G 47 FM : FIN AN CI AL MA N A GE ME N T SECTION A 47 KA PL AN P U BLI SH IN G SPE CI ME N E XA M: A N S W ER S 10 11 12 13 14 KA PL AN P U BLI SH IN G 47 FM : FIN AN CI AL MA N A GE ME N T 15 SECTION B 16 17 18 19 20 21 47 KA PL AN P U BLI SH IN G SPE CI ME N E XA M: A N S W ER S 22 23 24 25 26 KA PL AN P U BLI SH IN G 47 FM : FIN AN CI AL MA N A GE ME N T 27 28 29 30 47 KA PL AN P U BLI SH IN G SPE CI ME N E XA M: A N S W ER S SECTION C 31 KA PL AN P U BLI SH IN G 47 FM : FIN AN CI AL MA N A GE ME N T 48 KA PL AN P U BLI SH IN G SPE CI ME N E XA M: A N S W ER S 32 KA PL AN P U BLI SH IN G 48 FM : FIN AN CI AL MA N A GE ME N T 33 34 48 KA PL AN P U BLI SH IN G SPE CI ME N E XA M: A N S W ER S 35 KA PL AN P U BLI SH IN G 48 FM : FIN AN CI AL MA N A GE ME N T 36 48 KA PL AN P U BLI SH IN G Kaplan’s vast classroom experience helps many students pass first time The books are designed to cover the whole syllabus and they reflect how topics are taught in the classroom, focusing on what will be required of you in the exam ACCA Exam-focused KAPLAN PUBLISHING UK Student-friendly Using accessible language and engaging formats to help you understand more complex areas, Kaplan simplifies the learning process to make it easier for you to succeed Written by our expert tutors All Kaplan study materials are written by our subject specialists, experienced tutors who teach the paper so they know what works for students and how best to deliver it Innovative solutions MyKaplan gives you an integrated learning experience that combines: • easy to read reference books and resources which guide you through your studies, with helpful icons and practice exercises • online study tools available 24/7 • tests that are used by Kaplan tutors in class • compliancy with BDA recommendations to make materials dyslexic accessible STUDY TEXT SEPTEMBER 2018 TO JUNE 2019 SITTINGS More than just books, our study materials are supported by a wealth of free online resources, including testing and course assessments All accessible from our online learning environment MyKaplan All the resources have been designed to keep you on your study plan and help you pass first time ACCA THE ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS STRATEGIC BUSINESS LEADER (SBL) STRATEGIC BUSINESS LEADER (SBL) STUDY TEXT - VALID FOR SEPTEMBER 2018, DECEMBER 2018, MARCH 2019 AND JUNE 2019 EXAMINATION SITTINGS IN PARTNERSHIP WITH .. .ACCA Applied Skills Financial Management (FM) EXAM KIT FM : F IN AN CI AL M AN A GE M E N T British Library Cataloguing-in-Publication... revised exam format, all previous ACCA constructed response (long) exam questions within this kit have been adapted The specimen exam is included at the end of the kit KEY TO THE INDEX EXAM ENHANCEMENTS... SPECIMEN EXAM The detailed syllabus and study guide written by the ACCA, along with the specimen exam, can be found at: www.accaglobal.com /financial- management P 16 KA PL AN P U BLI SH IN G KAPLAN? ??S