CIMA Paper 2: Financial Accounting

CIMA Paper 2: Financial Accounting

The CIMA Fundamentals of Financial Accounting course follows from CIMA Paper 1 and is another step on the way to gain membership of the Chartered Institute of Management Accountants (CIMA). The CIMA Certificate in Business Accounting, which you will gain on completion of Papers 1 to 5, is the qualification corporate employers seek when recruiting for high level positions.

In the CIMA Fundamentals of Financial Accounting course you will study the differences between management and financial accounting systems, capital and revenue, and cash and profit.

You will consider the purpose of accounting records and learn about different types of accounting systems. You will also prepare different types of record.

You will prepare cash and bank accounts and examine audit checks and trails as well as studying methods of fraud prevention.

The Fundamentals of Financial Accounting course will also look into the preparation of accounts for single entities and look at profitability ratios, and liquidity, efficiency and capital structure ratios

Entry Requirements

You don't need any previous experience or qualifications to enrol in our CIMA courses. That's because we believe in making home study - and a rewarding future - as accessible as possible. However, you will need a good standard of maths, and a solid grasp of English.

Where will I go from here?

With the skills you gain from this and the other papers that make up this qualification, you will be able to provide accounting, management and finance skills from a variety of roles within business. You'll be in demand for positions as diverse as systems analyst, sales manager, Chief Financial Officer or consultant, depending on your particular interests. 

What will I gain?

On completion, you'll receive the CIMA Paper 2: Fundamentals of Financial Accounting qualification.

Completion of Papers 1 to 5 qualifies you for a CIMA Certificate in Business Accounting.

Awarding Body

CIMA is the world's largest and leading professional body of management accountants with 172,000 members and students in 165 countries. The papers we offer make up the Certificate in business accounting. It is the entry level accounting qualification for students with little or no accounting background and is a recognised qualification in its own right which is valued by employers.

Assessment

In order to complete the CIMA Fundamentals of Financial Accounting course, you'll need to undertake three formative assessments (set by ICS) during your course and one final exam (set by CIMA).

Formative Assessment 1

  • 3 multi-part short-answer questions and 4 scenario-based questions

Formative Assessment 2

  • 3 scenario-based questions

Formative Assessment 3

  • A mock exam

Final Exam

  • A computer-based exam consisting of 50 questions which must be completed within 2 hours

Notes

Scenario-based questions use hypothetical scenarios to test your application of knowledge. These questions are typically multi-part.

Generally, assessments can be sent to us online via the ICS Student Community: it's the fastest way to receive your results.

The format of the exam is subject to change. The details provided are intended only as a guide and should not be regarded as definitive.

Please note that you will be required to register with CIMA to sit the exam.

What will I get?

Because we're experts in home learning, ICS knows about and offers all the support you need along the way.

You'll receive study materials that have been specially designed for distance learning by experts in your chosen field.

You'll receive CIMA approved study materials, including the CIMA Official Learning System (the only test written and endorsed by CIMA).

You'll have access to an experienced personal tutor both online and over the phone, ready to help you with guidance and motivation.

You'll also be part of the ICS Online Student Community, where you'll have access to library materials and your account information, as well as vital links with your fellow students, with the chance to discuss your work, ask questions and make new friends.

Study Period

12 months

Hours of study

130 hours

(That's equivalent to 2 ½ hours of study a week over the 12-month support period)

Support period

12 months

Course code

M01

Course cost

£229.00

Additional fees

There are CIMA registration, exam and exemption fees that are additional to your course fees:

  • CIMA Registration Fee: £63
  • Exam fees: £45 per paper
  • Exemption fees: £45 per paper

Find out more information about arranging your examinations.

See your course content

Key Topics

Conceptual and Regulatory Framework

  • Examine the various user groups which need accounting information. Study the differences between financial and management accounting systems, capital and revenue, cash and profit, income and expenditure, assets and liabilities, and tangible and intangible assets. Consider the different methods of asset valuation.

Accounting Systems

  • Consider the purpose of accounting records. Prepare sales and purchases accounts, nominal ledger accounts, trial balances, trading accounts, accounts for indirect taxes, and accounts for payroll. Prepare accounts using accruals and prepayments, and prepare accounts for bad debts as well as allowances for receivables. Study the different methods of depreciation, accounts for impairment values, and non-current asset registers.

Control of Accounting Systems

  • Prepare cash and bank accounts, petty cash statements, accounts for inventories, and journal entries. Consider the need for financial accounting codes and financial controls. Examine audit checks and audit trials. Study methods of fraud prevention. Prepare control accounts and bank reconciliation statements. Learn the methods of valuing assets. Consider external and internal audit, and fair presentation.

Preparation of Accounts for Single Entities

  • Prepare income and expenditure accounts, accounts for incomplete records, manufacturing accounts, and cash-flow statements. Examine profitability ratios, liquidity ratios, efficiency ratios, and capital structure ratios.

You can either pay for your CIMA Fundamentals of Financial Accounting course in full or opt for a monthly payment plan.

Course fee: £229 (excluding discounts)

Or speak to one of our course advisors now for payment plans.

 

There are CIMA registration, exam and exemption fees that are additional to your course fees:

  • CIMA Registration Fee: £63
  • Exam fees: £45 per paper
  • Exemption fees: £45 per paper

Find out more information about arranging your examinations.