Clearing CB1 (CT2) – Business Finance (Finance and Financial Reporting)

clearing CB1 (Ct2)

Clearing CB1 (formerly CT2) is not as hard as it looks. Business Finance provides the theory and application of corporate finance as well as the main elements of companies’ financial statements.

Candidates will gain knowledge of corporate governance, different types of company structure, management goals and maximising shareholder wealth, traditional and new methods of raising short and long term finance, use of leverage, growth and profitability and mergers and acquisitions. In financial statements analysis, regulation and regulatory bodies for financial reporting, the company’s balance sheet, income and cash flow statements and elements of management accounting are considered.

  • Extended course of 18 chapters compared to other CT Exams.
  • Consists of multiple choice questions of 20 marks and 80 marks subjective questions.
  • Multiple choice questions are tricky so one should practice a lot from past papers and have a good understanding of the concepts in core reading and do read comments in solution section.
  • First 6 chapters are easy but understanding the text is must.
  • Last 3 chapters are very important and are usually asked in exam.
  • Questions on balance sheet preparation, ratio calculation, NPV calculation along with application based questions are important and usually carry high marks in exam.
  • Clearing CB1 (CT2) becomes a daunting task , mind it, it is not as easy as some people think especially after the revised pattern.
  • Make sure that you are well versed with entire conceptual part of the core reading material rather than just mugging it up as questions are going to be application based and situation oriented rather than bookwork.
  • 3 hours are enough for CB1 (CT2) provided that you manage your time well, there are 10 MCQ questions of 2 marks each and 10 subjective questions so first attempt MCQs then long questions and lastly short questions of 5 marks as they are tricky.
  • Some questions are weird and it might be difficult to understand what the examiner is asking and what level of solution is expected.
  • Don’t try to mug up exact book language if you are not able to learn. You can produce in your own language and will get marks.
  • Write as much as required and related to the question asked .Just for the sake of completing a question don’t write what is not required else you will not be able to complete the paper.
  • And don’t forget to practice Question bank and X assignments as they form a base of your preparation.

Source: AcTed

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  1. Avatar
    September 3, 2020

    Where can I find the question bank?

    • The Actuarial Club
      September 3, 2020

      You need to buy/arrange it from IFoA or any of your friend if they are a donator 🙂

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