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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which THREE of the following are characteristics of financial accounting?

A) Is forward looking
B) Meets management reporting needs
C) Reports historic transactions
D) Meets external reporting requirements
E) Records daily transactions
F) Monitors actual results to expected results

2. Which TWO of the following are principles of the Integrated Reporting Framework?

A) For entity's internal use
B) Reports on governance
C) Focus solely on financial KPIs
D) Rules-based
E) Forward-looking

3. Refer to the Exhibit.

A company operates an AVCO system of inventory. Opening inventory at the beginning of the period was 400 units @ $6.50 per unit.
During the period, the following purchases and issues were recorded:
The amount charged to the company's income statement in the period is

4. Your organization owed VAT of $22,700 at the beginning of the month.
During the month, it sold standard-rated goods with a net value of $600,000. Its purchases and expenses during the same month amounted to $188,000 including VAT. It paid VAT to the Revenue and Customs, of
$33,400. The VAT rate is 17.5%
At the end of the month, the balance on the VAT account was:

A) $66,300 credit
B) $66,300 debit
C) $128,200 credit
D) $128,200 debit

5. Which ONE of the following statements is true?

A) It is the responsibility of the external auditors to detect fraud
B) It is the responsibility of the management to detect fraud
C) It is the responsibility of the internal auditors to detect fraud
D) It is the responsibility of the shareholders to detect fraud

Solutions: