CIMA CIMA-F1 Online Practice Questions and Exam Preparation

CIMA CIMA-F1 Online Questions & Answers

• Question 131:

  Which of the following would NOT be assessed for tax under a Pay-As-You-Earn system?

  A. Profit-sharing payments received by an employee.
  B. Benefits in kind received by an employee.
  C. Commissions received by an employee.
  D. The wealth of an employee.
  D. The wealth of an employee.

• Question 132:

  Mr AM is the owner of Waxco Ltd. Mr AM was born in India, but currently resides in the USA. He has gained dual Indian and American citizenship.

  Mr AM first registered Waxco Ltd in the USA when he started the company ten years ago. However, because of lower costs, the company moved its central management station to Germany two years ago. Waxco Ltd

  has other smaller offices such as call centres across Asia, in locations such as Pakistan and Cambodia, however Waxco Ltd only currently sell goods in the USA.

  Which of the countries mentioned are relevant for determining Waxco Ltd's competent jurisdiction?

  A. The USA
  B. Germany
  C. India
  D. Pakistan
  E. Cambodia
  A. The USA
  B. Germany

• Question 133:

  FILL IN THE BLANK

  On 1 July 20X8 JKL has 100 units of inventory, which cost $8 each. The following transactions arose during the month of July:

  

  JKL values inventory using the first in. first out method. What is the value of JKL's inventory at 31 July 20X8? Give your answer to the nearest $.

  

  $700

• Question 134:

  The following information has been extracted from GHI's statement of financial position:

  

  Which of the following is the total cash flow for working capital changes to be recorded in GHI's statement of cash flows for the year ended 31 December 20X5?

  A. Outflow of $240,000
  B. Inflow of 5120,000
  C. Inflow of $240,000
  D. Outflow of $120,000
  C. Inflow of $240,000

• Question 135:

  FILL IN THE BLANK

  Statements of financial position for YZ, BC and DE at 31 March 20X2 include the following balances:

  

  YZ purchased 90% of BC's equity shares for $508,000 on 1 January 20X2. On 1 January 20X2 BC's retained earnings were $183,000. YZ uses the proportion of net assets method to value non-controlling interest at acquisition.

  YZ purchased 30% of DE's equity shares on 1 April 20X1 for $112,000. DE's retained earnings at 1 April 20X1 were $88,000.

  On 1 February 20X2 YZ sold goods to BC for $28,000 at a mark up of 25% on cost. All the goods were still in BC's inventory at 31 March 20X2. Calculate the amount of the non-controlling interest to be included in YZ's consolidated statement of financial position at 31 March 20X2. Give your answer to the nearest whole $.

  $47900

• Question 136:

  HOTSPOT Corporate governance is the means by which an entity is operated and

  

  

• Question 137:

  Which THREE of the following are included in the International Accounting Standards Board's "The Conceptual Framework for Financial Reporting"?

  A. The objective of financial statements
  B. Specification of the financial statements that must be presented
  C. Qualitative characteristics of financial statements
  D. Definition of the headings to use in financial statements
  E. The elements of financial statements
  F. The formats of financial statements
  A. The objective of financial statements
  C. Qualitative characteristics of financial statements
  E. The elements of financial statements

• Question 138:

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  A specialized product was commissioned by a customer and the agreed price was $38,000. The product was completed at a cost of $34,000.

  It was then discovered that new regulations meant that the specialized product now failed health and safety requirements. The specialized product had to be modified to meet the new regulations at a cost of $9,000. The customer agreed to

  pay an extra $3,000 towards the modifications.

  At 31 December 20X5 the specialized product was still in inventory and had not been modified.

  Calculate the value of the specialized product that should be included in inventory as at 31 December 20X5. Give your answer to the nearest whole $000.

  $32000

• Question 139:

  What is the correct accounting treatment for a finance lease under IFRS 16?

  A. Expense all payments as they are made
  B. Recognize a lease liability and a right-of-use asset
  C. Record the lease payments as prepaid rent
  D. Disclose the lease payments in the notes to the financial statements
  B. Recognize a lease liability and a right-of-use asset

• Question 140:

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  Country ZZ allows the cost of a capital asset to be adjusted for an indexation allowance which takes into consideration the effect of inflation, although the indexation allowance cannot convert a chargeable gain into a chargeable loss.

  The following data relates to the sale of an asset ABC has the following working capital ratios at 31 December 20X2:

  Dunng the year ended 31 December 20X4 credit purchases wefe $1,700,000 and at 31 December 20X4 the outstanding trade payables balance was $340,000

  Calculate the working capital cycle for ABC.

  Give your answer to the nearest whole number of days and assume there are 365 days in a year. March 20X4:

  

  Calculate the chargeable gain or loss in respect of the sale of this asset.

  Give your answer to the nearest $.

  $0