ACCA Financial Management (FM) FAQs

1. What is the format of the ACCA Financial Management (FM) exam?

The FM exam is a computer-based exam (CBE) that lasts for 3 hours. It includes three sections:

• Section A: 15 objective test questions worth 2 marks each.
• Section B: Three 10-mark questions based on short scenarios.
• Section C: Two 20-mark questions that require more detailed calculations and explanations .

2. What topics are covered in the FM syllabus?

The FM syllabus includes:

• Financial Management Function: Understanding the role and purpose within a business.
• Financial Management Environment: Assessing the economic environment and its impact.
• Working Capital Management: Techniques for managing inventory, receivables, payables, and cash.
• Investment Appraisal: Methods and techniques for evaluating long-term investments.
• Business Finance: Identifying and evaluating sources of finance, including equity and debt.
• Cost of Capital and Business Valuations: Principles underlying the valuation of business and financial assets.
• Risk Management: Techniques for managing financial risks, including foreign exchange and interest rate risk .

3. How should candidates prepare for the FM exam?

• Study Resources: Utilize ACCA-approved study texts, revision kits, and online resources from platforms like OpenTuition and aCOWtancy.
• Practice Questions: Regularly practice past exam questions and mock exams under timed conditions to improve speed and accuracy.
• Technical Articles and Examiner Reports: Read these resources on the ACCA website to understand common pitfalls and examiners’ expectations .

4. What are some key tips for passing the FM exam?

• Understand the Exam Structure: Familiarize yourself with the format and types of questions.
• Balance Theory and Practice: Ensure you are comfortable with both theoretical concepts and practical applications.
• Time Management: Develop a strategy to manage your time effectively during the exam.
• Use Specimen Exams: Practice with specimen exams available on the ACCA website to simulate the actual exam environment.

5. Are there any specific tools or techniques I need to know for the FM exam?

Yes, for the spreadsheet questions in Section C, you should be familiar with basic mathematical functions and how to use the NPV and IRR functions. While complex formulas are not required, understanding how to label your work and add comments is important for clarity and accuracy.

For more detailed information and resources, visit the ACCA Global Financial Management page and OpenTuition’s Financial Management section.

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