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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Which THREE of the following would be shown in the statement of changes in equity?

A) Loan stock(debenture) issues
B) Share issues
C) Dividends paid
D) Dividends received
E) Taxation for the year
F) Profit for the year

2. Refer to the Exhibit.

The following information is available for a company for the period:
The value of sales invoices for the period was:

A) $443,346
B) $472,474
C) $399,500
D) $453,198

3. Which one of the following statements is true?

A) Expenses accrued are current assets
B) Expenses accrued decrease the profit of an organization
C) Depreciation is an example of an accrued expense
D) Expenses accrued are deducted from the figure in the trial balance in arriving at the income statement charge for that item

4. Your company provides a number of staff with lap-top computers, as well as pocket calculators. It capitalizes the cost of the computers and depreciates them over several years, but writes off the cost of the pocket calculators in full, against profits, in the period in which they are purchased.
The main justification for this difference in treatment is:

A) The company has always adopted this treatment, and therefore must be consistent with the treatment of previous periods
B) Computers last longer than pocket calculators
C) The cost of pocket calculators is not material
D) Pocket calculators do not decrease in value

5. Which TWO of the following are features of a private limited company?

A) Recognised as a 'person' in the eyes of the law
B) Usually a large number of owners
C) Listed on the stock exchange
D) Usually a small number of owners

Solutions: