SC E-LEARNING • ACCA AFM

AFM — Advanced Financial Management

Strategic Professional Option • Free revision material, sample MCQs and mini mock.

What to Focus On

advanced investment, financing, valuation, restructuring and risk management.

Attempt each question before opening the answer.

1. Adjusted present value separates:

A. Base-case value from financing effectsB. Revenue from expensesC. Debt from assets onlyD. Tax from sales

Show answer

Base-case value from financing effects — APV separates operating value from financing side effects.

2. A currency option gives the holder:

A. A right but not an obligationB. An obligation onlyC. No protectionD. Guaranteed profit

Show answer

A right but not an obligation — Options provide flexibility to exercise if beneficial.

3. Higher business risk would generally:

A. Increase required returnB. Reduce required return to zeroC. Eliminate cost of capitalD. Remove gearing

Show answer

Increase required return — Investors generally require higher return for higher risk.

4. Free cash flow is commonly discounted using:

A. An appropriate cost of capitalB. Book value per shareC. Dividend yield onlyD. Tax rate only

Show answer

An appropriate cost of capital — Valuation uses a risk-adjusted discount rate.

5. Financial restructuring may involve:

A. Changes to debt and equity mixB. Only changing auditorsC. Inventory countsD. Tax filing only

Show answer

Changes to debt and equity mix — Restructuring often changes financing arrangements.

Use the five questions above as a timed quick check, then review the explanations.

SC E-LEARNING ACCA TEST SESSION

Paper-wise tests, mixed tests and mocks will be added to the ACCA test-session service.