These are ACCA F9 (FM) Financial Management MCQs for Part-A of the Syllabus “Financial management function”.

These multiple-choice questions (MCQs) are designed to help ACCA F9 students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have finished the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F9 (FM) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:	ACCA – Association of Chartered Certified Accountants
Fundamental Level:	Applied Skills
Subject:	Financial Management
Paper:	F9 – FR
Chapter and Topic	The nature and purpose of financial management, Financial objectives and relationship with corporate strategy, Stakeholders and impact on corporate objectives, Financial and other objectives in not-for-profit organisations
Syllabus Area:	A – “Financial management function”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part A of the Syllabus; “Financial management function” of ACCA F9 (FM) Financial Management Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate

Result

Students will get their F9 CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F9 (FM) - Part A - MCQs - Section A

Course: ACCA - Association of Chartered Certified Accountants
Subject: F9 (FM) - Financial Management
Syllabus Area: A - Financial management function
Chapter: Financial management and financial objectives
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

Increasing which TWO of the following would be associated with the financial objective of shareholder wealth maximisation?

Reported profit

Share price

Earnings per share

Weighted average cost of capital

Dividend payment

2 / 15

Geeh Co paid an interim dividend of $0.06 per ordinary share on 31 October 20X6 and declared a final dividend of $0.08 on 31 December The ordinary shares in Geeh Co are trading at a cum-div price of $1.83.

What is the dividend yield? (to one decimal place)

______ %

3 / 15

Which of the following statements is NOT correct?

Return on capital employed is the product of net profit margin and net asset turnover

Dividend yield can be defined as dividend per share divided by the ex dividend share price

Return on equity can be defined as profit before interest and tax divided by shareholders' funds

Return on capital employed can be defined as profit before interest and tax divided by the sum of shareholders' funds and prior charge capital

4 / 15

A government body uses measures based upon the 'three Es' to measure value for money generated by a publicly funded hospital.

Which of the following relates to efficiency?

Percentage change in doctors' salaries compared with previous year

Cost per operation

Cost per successfully treated patient

Proportion of patients readmitted after unsuccessful treatment

5 / 15

Which of the following statement is NOT true?

Profit takes account of risk.

Accounting profit can be manipulated by managers.

Accounting profit is not the same as economic profit.

6 / 15

H Co's share price is $3.50 at the end of 20X1 and this includes a capital gain of $0.75 since the beginning of the period. A dividend of $0.25 has been paid for 20X1.

What is the shareholder return? (to 1 decimal place)

______ %

7 / 15

ARP is a charity providing transport for people visiting hospitals.

Which of the following performance measures would BEST fit with efficiency in a value for money review?

Number of communities served

A comparison of actual operating expenses against the budget

Cost per journey to hospital

Percentage of members who re-use the service

8 / 15

Which TWO of the following statements TRUE?

Financial objectives should be quantitative so that their achievement can be measured.

Shareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange.

Maximising market share is an example of a financial objective.

9 / 15

Which of the following does NOT form part of the objectives of a corporate governance best practice framework?

Separation of chairperson and CEO roles

Employment of non-executive directors

Minimisation of risk

Establishment of audit, nomination and remuneration committees

10 / 15

PT Co has just paid a dividend of 15 cents per share and its share price one year ago was $3.00 per share. The total shareholder return for the year was 25%.

What is the current share price? (to two decimal places)

$______

11 / 15

Which of the following is LEAST likely to fall within financial management?

The dividend payment to shareholders is increased.

Funds are raised to finance an investment project.

Surplus assets are sold off.

Non-executive directors are appointed to the remuneration committee.

12 / 15

Year	0	1	2	3
Earnings per share (cents)	30.0	31.8	33.9	35.7
Dividends per share (cents)	13.0	13.2	13.3	15.0
Share price at start of year ($)	1.95	1.98	2.01	2.25

Which of the following statements is correct?

Total shareholder return for the third year is 26%

Mean growth in dividends per share over the period is 4%

The dividend payout ratio is greater than 40% in every year in the period

Mean growth in earnings per share over the period is 6% per year

13 / 15

A company has recently declared a dividend of 12c per The share price is $3.72 cum div and earnings for the most recent year were 60c per share.

What is the P/E ratio?

14 / 15

Which of the following statements describes the main objective of financial management?

Providing information to management for day to day functions of control and decision making

Providing information to external users about the historical results of the organisation

Maximisation of shareholder wealth

Efficient acquisition and deployment of financial resources to ensure achievement of objectives

15 / 15

Last year ABC Co made profits before tax of $2,628,000. Tax amounted to $788,000.

ABC Co's share capital was $2,000,000 (2,000,000 shares of $1) and $4,000,000 6% preference shares.

What was the earnings per share (EPS) for the year? (insert your answer to two decimal places)

$________

Your score is

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F9 (FM) – PART A – CBE MCQs – ACCA