ACCA F9 Exam Tips March 2016 session given below are just intelligent guesses from exam point of view provided by famous tuition providers. These exam tips must not be relied on totally. To increase chances of success in Exams you must prepare full breadth of syllabus and topics
ACCA F9 Exam Tips March 2016:
ACCA F9 Exam Tips March 2016 Session are given below by famous tuition providers
Part A: MCQs will be from any syllabus area.
Part B: Some frequently tested areas in the past were
- NPV with Inflation and Taxation
- Cash operating cycle
- Receivable, Payable & Inventory Management
- Financial Gearing
- Cost of Equity & Debt
- CAPM & MM
- Foreign Exchange Risk Management
- Interest Rate Risk Management
- Sources of Finance
Don’t just keep focusing on numbers. Although the numbers are important but approximately half of the marks are for the written elements. Prepare every topic thoroughly to increase chances of passing the exam.
20 multiple choice questions worth 2 marks each. The MCQs will largely be knowledge based and will balance out the questions in Section B to make sure that all aspects of the syllabus are examined. It is likely that some of the MCQs will test the financial management and objectives (ratio analysis, the concept of shareholder wealth) as well as economic environment and financial institutions topics (financial intermediation, fiscal and monetary policies). The efficient market hypothesis is likely to be tested here too.
But bear in mind that the whole point of setting MCQs is to test good coverage of the syllabus in the exam.
Q1 – Q3: Three 10 mark questions. The questions will be broken down into sub requirements and may also be based on a short scenario.
Areas expected to be tested in questions 1 to 3 working capital management (the impact of a change in credit period or accepting a factor’s offer), business or security valuations (assets method and earnings valuation), financial risk management (most likely in the form of currency risk but it is possible that interest rate risk is examined here).
Q4, Q5: Two 15 mark questions which will be broken down into sub requirements and be scenario based. These two questions will focus on these topics investment appraisal (likely to be an NPV with inflation and tax), working capital management and business finance (either an evaluation of financing options – interest coverage and gearing ratios are likely to be important here or a cost of capital calculation are most likely). Whichever of these three topics does not feature in question 4 or 5 will appear in question 1, 2 or 3.
The exam is written so that approximately 50% of the marks will be numerical in nature and the other 50% will be narrative (either knowledge or understanding in the case of multiple choice questions or requiring written answers in section B questions). You should not neglect your written skills. Try to explain your points in full sentences rather than simply leaving a bullet point answer.
At the beginning of the exam you are given 15 minutes “reading and planning” time. During this time you can read and annotate your question paper and so this is a perfect chance to make notes next to the information in the scenarios of things to include in your answer.
During this time you should also think about the order in which you will attempt the questions – start with your best question first but remember to watch your timing very closely – you seriously damage your chances of passing if you do not attempt all the questions set or if you significantly run out of time.
Presentation is important. It is up to you to make it easy for your marker to give you marks. It is your responsibility to convince the marker you deserve to pass, so make your computations, workings and narrative easy to follow.
Choose which question to do first in the exams. Typically there will be two relatively two straightforward questions, one slightly more problematic and other one really tough. Make sure you do the easy one first and bag as many easy marks as possible.
Please know your cost of capital. This topic comes up in each and every session typically anywhere between 6-10 marks. The critical issue being WACC (Weighted Average Cost of Capital), you should be able to get all 6 or 10 marks.
Make sure you can do all the subsidiary calculations and of course calculate WACC or alternatively if it is about project specific, make sure you could go through the five steps.
Key Examinable Areas:
– WACC possibly with a bit of capital structure theory thrown in.
– Investment appraisal NPV with working capital and tax possibly with a bit of asset replacement.
– Risk with forward market hedge and money market hedge and a bit of yield curves.
– Working capital management with inventory and cash and possibly overtrading.
– Theory questions possibly on EMH, sources of finance (including Islamic finance), economics.