CIMA CIMA-F1 Online Practice Questions and Exam Preparation

CIMA CIMA-F1 Online Questions & Answers

• Question 101:

  Which THREE of the following are conditions that must be met to allow an asset to be categorised as held for sale?

  A. Management is committed to a plan to sell
  B. The asset is being actively marketed at a reasonable price
  C. The asset is available for immediate sale
  D. A buyer has already expressed interest
  E. The sale of the asset is likely to generate a significant profit
  A. Management is committed to a plan to sell
  B. The asset is being actively marketed at a reasonable price
  C. The asset is available for immediate sale

• Question 102:

  FILL IN THE BLANK

  On 31 July 20X8, CDE's directors decided to sell an asset with a carrying amount of $26,000. On that date it ceased to be used in readiness for its sale.

  There is an active second-hand market for this type of asset and it has been advertised at its market value of $24,000 When a seller is found, the asset will need to be dismantled at a cost of $1,000

  What is the amount to be recognised as an asset held for sale on 31 July 20X8?

  Give your answer to the nearest $.

  

  $23000

• Question 103:

  FILL IN THE BLANK

  The following information relates to a single asset:

  *Original cost of $186,000

  *Estimated residual value of $6,000 *Expected useful life of 10 years *Accumulated depreciation at 31 December 20X5 of $66,960 *Annual depreciation rate of 20% on a reducing balance basis

  Calculate the amount of depreciation that should be charged to profit or loss for the year ended 31 December 20X6. Give your answer to the nearest whole number.

  $23808

• Question 104:

  In most developed countries employers deduct the tax from employees' pay each month and then pay the tax to the tax authorities on behalf of the employee on a monthly basis. Which THREE of the following are advantages of this system to the employee?

  A. The tax is collected earlier than systems that assess earnings at the end of the year.
  B. The payment of tax is easier as the tax is deducted before the net salary is paid to the employee.
  C. Most of the administration costs are borne by the employees.
  D. The responsibility for the tax calculations rests with the employer and therefore there is less chance of mistakes being made.
  E. There is less chance of interest and penalties being levied on the employee by the tax authorities.
  B. The payment of tax is easier as the tax is deducted before the net salary is paid to the employee.
  D. The responsibility for the tax calculations rests with the employer and therefore there is less chance of mistakes being made.
  E. There is less chance of interest and penalties being levied on the employee by the tax authorities.

• Question 105:

  Which of the following would be classified as an operating cash flow under IAS 7?

  A. Payment for new machinery
  B. Repayment of a bank loan
  C. Dividend paid to shareholders
  D. Cash received from customers
  D. Cash received from customers

• Question 106:

  Which THREE of the following are included within an entity's statement of profit or loss?

  A. Revaluation surplus
  B. Dividends paid
  C. Impairment loss
  D. Finance income
  E. Dividends revived
  C. Impairment loss
  D. Finance income
  E. Dividends revived

• Question 107:

  FILL IN THE BLANK

  The following information is extracted from the trial balance of YY at 30 September 20X3.

  

  i. Included in revenue is a refundable deposit of $20 million for a sales transaction that is due to take place on 14 October 20X3. ii. The cost of closing inventory is $28 million, however, the net realisable value is estimated at $25 million.

  iii. The interest free loan was obtained on 1 January 20X3. The loan is repayable in 12 quarterly installments starting on 31 March 20X3. All installments to date have been paid

  on time.

  Calculate the cost of sales that would be shown in YY's statement of profit or loss for the year ended 30 September 20X3. Give your answer to the nearest $ million.

  $150000000

• Question 108:

  XYZ is a manufacturer. Which of these should be classified as other comprehensive income in XYZs statement of profit or loss and other comprehensive income for the year ended 31 December 20X4?

  A. Interest received on savings
  B. Revaluation surplus on properly
  C. Dividend income from investments
  D. Gain on disposal of machinery
  B. Revaluation surplus on properly

• Question 109:

  Company RET's financing activities are exactly 35% of their operating activities expenses each month. Below is a list of Company RET's total expenses for this month:

  Inventory supplies purchased: £145,000 Employee wages: £65,000 Purchase of a shop: £105,000 Dividend payments: ?? Cash repayments on loan: £61,000

  What is company RET's total dividends payment for this month?

  A. £12,500
  B. £49,250
  C. £131,600
  D. £26,500
  A. £12,500

• Question 110:

  PZ has the following working capital ratios: Which of the following could be the reason for the movements?

  

  A. PZ has introduced a new policy to take discounts from suppliers during 20X1.
  B. The workforce of PZ have been on strike for a month during 20X1 but deliveries of inventory have still been received by the entity.
  C. A new credit controller has been employed who has been more rigorous with their collection procedure of receivables.
  D. PZ has implemented a just-in-time system of ordering inventory during 20X1.
  B. The workforce of PZ have been on strike for a month during 20X1 but deliveries of inventory have still been received by the entity.