Most Likely Chapters for Section C in ACCA FM Exam
Most Likely Chapters for Section C in ACCA FM Exam
1. Investment Appraisal
Key Topics:
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Payback Period
- Discounted Cash Flow (DCF)
- Sensitivity Analysis
- Risk and Uncertainty in Investment Decisions
Why It's Important:
Investment appraisal is a critical area as it involves evaluating the viability of projects and investments, which is a fundamental skill for financial managers. Questions often require calculations and discussions on the financial acceptability of projects.
2. Working Capital Management
Key Topics:
- Inventory Management
- Receivables Management
- Payables Management
- Cash Management
- Working Capital Ratios (e.g., Current Ratio, Quick Ratio)
- Cash Conversion Cycle
Why It's Important:
Effective working capital management ensures that a company can meet its short-term obligations and operate efficiently. This area often includes both calculative and narrative questions, testing the ability to manage liquidity and profitability.
3. Business Finance
Key Topics:
- Sources of Finance (Debt vs. Equity)
- Cost of Capital (WACC)
- Capital Structure
- Dividend Policy
- Gearing Ratios
- Financial Risk Management
Why It's Important:
Understanding business finance is essential for making informed decisions about funding and capital structure. This area often includes questions on evaluating different financing options and their impact on the company's financial health.