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CIMA F1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Principles of Taxation | 20% | - Taxation fundamentals
|
| Topic 2: Financial Statements | 45% | - Statement preparation and IFRS application
|
| Topic 3: Managing Cash and Working Capital | 25% | - Cash and working capital management
|
| Topic 4: Regulatory Environment of Financial Reporting | 10% | - Regulators and their role
|
CIMA Financial Reporting Sample Questions:
1. Which TWO of the following would improve a company's short term cash flow position?
A) Postponing non essential capital expenditure
B) Reducing levels of inventory by implementing a just in time system for purchasing
C) Paying a bonus to staff for exceptional performance
D) Taking advantage of bulk discounts offered on inventory purchases
E) Increasing the working capital cycle by making payments to suppliers early
2. Which of the following methods could be used by a tax authority to reduce tax evasion and avoidance?
A) Reduce requirements to have tax returns audited.
B) Simplify the tax structure, minimizing allowances and exemptions.
C) Increase tax rates to compensate for losses due to evasion.
D) Reduce penalties for avoidance.
3. Which TWO of the following are features of a bank overdraft?
A) The amount off overdraft utilised will fluctuate according to the needs off the borrowing entity.
B) A fixed amount of interest is determined for the period of the overdraft
C) Interest is charged on the balance outstanding.
D) Repayments are scheduled in advance
E) The bank cannot demand repayment of the overdraft before the end of the agreed period.
4. The International Accounting Standards Board's "The Conceptual Framework for Financial Reporting" identifies fundamental and enhancing qualitative characteristics of financial statements.
Which of the following is included within the fundamental characteristics?
A) Materiality
B) Understandability
C) Verifiability
D) Comparability
5. STU has a non-current asset which originally cost $250,000, has an expected life of 8 years and an estimated residual value of $25,000. The asset is depreciated at 25% a year on a reducing balance basis On 1 July 20X5 the accumulated depreciation for this asset is $109,375 What is the depreciation charge for the year ending 30 June 20X6?
Give your answer to the nearest whole number.
Solutions:
| Question # 1 Answer: A,B | Question # 2 Answer: B | Question # 3 Answer: A,C | Question # 4 Answer: A | Question # 5 Answer: Only visible for members |

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