CIMA CIMA-F1 Online Practice Questions and Exam Preparation

CIMA CIMA-F1 Online Questions & Answers

• Question 91:

  In Country X, trading losses in any year can be carried back and set off against trading profits in the previous year, with any unrelieved losses carried forward to set against the first available trade profits in future years. GH had the following taxable profits and losses in years 20X1 to 20X4:

  

  What are the taxable profits for 20X4, assuming the most efficient use of the loss is made?

  A. $65,000
  B. $95,000
  C. $100,000
  D. $70,000
  B. $95,000

• Question 92:

  Select THREE actions that should be taken by a business offering credit to its customers to ensure that amounts owing are collected as quickly as possible.

  A. Chase up slow payers with reminder letters.
  B. Monitor outstanding trade receivables.
  C. Extend the credit terms available to customers.
  D. Issue invoices quickly.
  E. Monitor outstanding trade payables.
  F. Take longer to settle trade payables than collect trade receivables.
  A. Chase up slow payers with reminder letters.
  B. Monitor outstanding trade receivables.
  D. Issue invoices quickly.

• Question 93:

  Which of the following would NOT be a risk or impact of overtrading?

  A. Increase in interest payments
  B. Increased borrowings
  C. Shortage of working capital
  D. Expanding too quickly
  D. Expanding too quickly

• Question 94:

  What is the accounting treatment for an asset classified as held for sale under IFRS 5?

  A. Depreciation continues until the asset is sold.
  B. The asset is measured at carrying amount or fair value less costs to sell, whichever is lower.
  C. The asset is removed from the balance sheet immediately.
  D. The asset is depreciated over its remaining useful life.
  B. The asset is measured at carrying amount or fair value less costs to sell, whichever is lower.

• Question 95:

  STU commenced trading on 1 January. Total sales for the month of January were $250,000. which were 75% on credit and 25% for cash. Sales are expected to increase by 10% a month Irrecoverable debts are estimated to be 5% of credit sales Of the credit sales expected to pay, 50% pay in the month following the sale and the remaining 50% the month after.

  The cash expected to be received in February is:

  A. $151,563
  B. $162,500
  C. $157,813
  D. $156,250
  C. $157,813

• Question 96:

  FILL IN THE BLANK

  An entity had a current tax liability of $187,000 in its statement of financial position as at 30 September 20X5. It was subsequently negotiated and eventually agreed with the tax authorities that the entity would pay $192,000 and this was paid

  on 6 January 20X6.

  The entity's management estimate that the tax due on profits for the year to 30 September 20X6 is $231,000.

  Calculate the entity's corporate income tax expense included in its statement of profit or loss for the year ended 30 September 20X6.

  Give your answer to the nearest whole $000.

  $236000

• Question 97:

  HOTSPOT

  RS has the following balances at 31 March 20X6:

  $1 issued equity shares: 836,000

  Retained earnings: 400,000

  RS’s $1 equity shares currently trade at $5.00 each.

  What is the minimum number of equity shares that GH needs to purchase for RS to be designated as a subsidiary of GH?

  Select your answer from the drop down box below.

  

  

• Question 98:

  In accordance with the Conceptual Framework for Financial Reporting, which of the following describes the historical cost measurement basis for an asset?

  A. The amount paid when the asset was purchased.
  B. The present value of future cash flows generated from the asset.
  C. The cost to acquire an equivalent asset at the measurement date.
  D. The amount that would be received on the sale of the asset.
  A. The amount paid when the asset was purchased.

• Question 99:

  Under IFRS, which of the following costs should be included in the cost of an inventory item?

  A. Abnormal waste costs
  B. Selling and distribution costs
  C. Storage costs for finished goods
  D. Import duties
  D. Import duties

• Question 100:

  FILL IN THE BLANK

  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.

  

  $35156