HKICPA QP Module 7 Financial Management study guide
HKICPA QP Module 7 Financial Management · Work through your exam, one topic at a time.
This page is an independent study resource for candidates preparing for the financial management component of the Hong Kong Institute of Certified Public Accountants (HKICPA) Qualification Programme (QP). The QP is the Institute's professional accountancy education route for people working towards becoming a Hong Kong CPA; the Institute's own navigation lists QP pages covering 'About the QP', 'Pre-entry education', 'Professional accountancy education', 'Revised Practical Experience Framework', 'Application and registration', 'Timetable', 'Fee schedule', 'Programme accreditation', 'Position Paper', 'QP graduate', 'Complaints against registered students', 'FAQ' and 'Enquiries', and separately 'The Capstone', 'QP Student support and benefits' and 'QP Examination Support'. The HKICPA QP Module 7 Financial Management study guide has 4 sections and about 1,898 words.
01Financial Management Environment and Objectives
This domain tests the framework within which financial decisions are made: the objective of the firm, agency relationships, corporate governance, and the markets and intermediaries that supply capital. Questions often require you to distinguish shareholder wealth maximisation from accounting profit, identify agency costs, and explain how market efficiency affects financing and investment decisions.
497 words, about 2 min02Investment Appraisal and Capital Budgeting
This domain tests the selection of long-term projects using discounted and non-discounted techniques. The exam expects you to identify relevant incremental cash flows, apply NPV correctly with tax and working capital, handle inflation and risk, and rank projects under capital rationing.
446 words, about 2 min03Financing, Cost of Capital and Capital Structure
This domain tests how firms raise funds and how the cost of those funds affects investment decisions. The exam expects you to compute the weighted average cost of capital (WACC), estimate the cost of equity and debt, understand capital structure theories, and adjust discount rates for project risk.
467 words, about 2 min04Working Capital, Treasury and Risk Management
This domain tests the management of short-term assets and liabilities and the treasury function's role in liquidity and risk control. The exam expects you to compute the cash operating cycle, evaluate inventory and receivables policies, assess early settlement discounts, and explain hedging of foreign exchange and interest rate risk.
488 words, about 2 min