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F2 Chapter 2 Questions

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    • Of course!! Our material for all the exams is always to date for the current syllabus.

      Our free lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well. If you look at the cover of the free lecture notes that go with the lectures, you will see which exam dates they are relevant for.

      (In future, please ask this sort of question in the Ask the Tutor Forum rather than as a comment on a test 🙂 )

    • Secondary and primary date are explained in the lectures.
      Quantitative data is data that can have numbers attached and therefore can be measured.
      Population data is defined as per the statement in the question.

      Continuous data can take on any value. For example if I asked everyone for their age, then there are in infinite number of possible answers (if they were to give their ages to the nearest second!!). More likely I would expect to record your age in years, in which case there are a limited number of possible values – these would be discrete variables.

  11. F9 bpp text chapter 5 ‘example 2.10.1. Page 108

    Grabbit Quick Co achieves current annual sales of $1,800,000. The cost of sales is 80% of this amount, but bad debts average 1% of total sales, and the annual profit is as follows. $ Sales 1,800,000 Less cost of sales 1,440,000 360,000 Less bad debts 18,000 Profit 342,000 The current debt collection period is one month, and the management consider that if credit terms were eased (option A), the effects would be as follows. Present policy Option A Additional sales (%) – 25% Average collection period 1 month 2 months Bad debts (% of sales) 1% 3% The company requires a 20% return on its investments. The costs of sales are 75% variable and 25% fixed. Assume there would be no increase in fixed costs from the extra revenue; and that there would be no increase in average inventories or accounts payable. Which is the preferable policy, Option A or the present one? Solution The increase in profit before the cost of additional finance for Option A can be found as follows.

    (a) $ Increase in contribution from additional sales 25% $1,800,000 40%* Less increase in bad debts (3% $2,250,000) – $18,000 Increase in annual profit 180,000 49,500 130,500 * The contribution/sales ratio is 100% – (75% 80%) = 40% (b) (c) Proposed investment in accounts receivable $2,250,000 1/6 Less current investment in accounts receivable $1,800,000 1/12 Additional investment required $ 375,000 150,000 225,000 Cost of additional finance at 20% $45,000 As the increase in profit exceeds the cost of additional finance, Option A should be adopted.

    Hello Sir. Please I want to know whether the “RETURN ON EXTRA INVESTMET” could be calculated and then the ratio will then be compared with the REQUIRED “RETURN ON INVESTMENT” as an alternative to solving this question.

    • hi sir
      first of all, i would like to say thank you for this very helpful site
      secondly, im preparing myself to sit for my f2 paper
      after two weeks so i just want to confirm if i can rely on this site
      rather than studying bpp revision kit
      thank you again

      • You don’t need to use a Study Text, but you certainly need to use the Revision Kit – it is full of exam standard questions to practice, and practice is vital to passing the exam.

      • sir i don’t want to make you tired but still you didn’t answer my question
        i have asked before if your site open tuition is good enough for preparing and passing
        exams with perfect marks

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      • I don’t know where you asked your question – if it was on this page then I do not always see comment on this page (and this is not the place to ask question like this – you should ask in the Ask the Tutor Forum, not as a comment on a test.)

        It is virtually impossible to get perfect marks on the exam!! Our lectures cover everything needed to be able to pass the exam well, but in addition it is vital to practice lots of questions and you must by a Revision Kit from one of the ACCA approved publishers (as we say throughout this website) – they are full of exam standard questions for practice,

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