CIMA CIMA-F1 Online Practice Questions and Exam Preparation

CIMA CIMA-F1 Online Questions & Answers

• Question 171:

  The accounting profit before tax of an entity was $243,200 for the year ended 31 July 20X4. The accounting profit included disallowable income from government grants of $48,000 and disallowable expenditure of $25,600 on entertaining expenses.

  The entity also paid a $40,000 dividend to shareholders. The tax rates for the country were as follows:

  

  Calculate the tax the entity is due to pay for the year ending 31 July 20X4.

  A. $47,840
  B. $39,174
  C. $57,546
  D. $44,160
  A. $47,840

• Question 172:

  FILL IN THE BLANK

  Refer to the exhibit.

  

  An entity sells 2,000 bags of product X each year. It has been estimated that the cost of holding one bag of product X is 4. The cost of placing an order is 250.

  where:

  Co = cost of placing an order

  Ch = cost of holding one unit in inventory for one year

  D = annual demand

  Calculate the Economic Order Quantity (EOQ) for bags of product X.

  Give your answer to the nearest whole number of bags.

  500 bags

• Question 173:

  The following information relates to AA. Extract of Trial Balance at 31 December 20X4;

  

  Notes

  (i)

  Inventory at 31 December 20X4 was valued at cost at $30.

  (ii)

  The loan which was received on 1 July 20X4 is repayable in 20X9.

  (iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3. AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is expected amounting to $20.

  (iv)

  Cost of sales, administration and distribution costs need to be adjusted for the following:

  What figures should be entered on the face of the Statement of profit or Loss for the year ended 31 December 20X4 in relation to Interest and Corporate income tax?

  A. Interest $25 Corporate income tax $(37)
  B. Interest $25 Corporate income tax $37
  C. Interest $50 Corporate income tax $(3)
  D. Interest $50 Corporate income tax $3
  A. Interest $25 Corporate income tax $(37)

• Question 174:

  The development of an international financial reporting standard generally goes through a number of stages. Which of the following is NOT a stage of development?

  A. Producing an exposure draft for public comment
  B. Establishing an advisory committee
  C. Developing and publishing a discussion paper
  D. Establishing an interpretations committee
  D. Establishing an interpretations committee

• Question 175:

  In accordance with IAS 16 Property, Plant and Equipment, in which of the following situations would subsequent expenditure on a non-current asset be capitalised?

  A. An entity purchased an aircraft five years ago, when its engines were separately identified in the accounting records. The engines now need to be replaced at a cost of $2 million each. When the engines are replaced the aircraft is expected to be airworthy for a further 5 years.
  B. An entity's head office building suffered a major fire, the upper floors and roof were completely destroyed. The entity proposes to restore the building at a cost of $1 million and move back in to the building to use it as a head office again.
  C. An entity's delivery vehicle was in a car park when the car park was flooded. The engine and interior of the vehicle needed extensive repair and renovation costing $25,000.
  D. A manufacturing entity closes its factory for two weeks each summer for routine maintenance and repairs. The current year's cost of maintenance and repairs was $62,000.
  A. An entity purchased an aircraft five years ago, when its engines were separately identified in the accounting records. The engines now need to be replaced at a cost of $2 million each. When the engines are replaced the aircraft is expected to be airworthy for a further 5 years.

• Question 176:

  FILL IN THE BLANK

  The following information relates to AA.

  Extract of Trial Balance at 31 December 20X4;

  

  Notes

  (i)

  Inventory at 31 December 20X4 was valued at cost at $30.

  (ii)

  The loan which was received on 1 July 20X4 is repayable in 20X9.

  (iii) Corporate income tax represents an over-provision of tax for the year ended 31 December 20X3. AA reported a loss for tax purposes for the year ended 31 December 20X4 and a tax refund is expected amounting to $20.

  (iv) Cost of sales, administration and distribution costs need to be adjusted for the following:

  Calculate gross profit for the year ended 31 December 20X4. Give your answer as a whole $.

  $327

• Question 177:

  RS purchased an asset on 1 May 20X1 for $200,000, exclusive of import duties of $25,000.

  The asset was sold on 1 December 20X3 for $450,000, incurring costs to sell of $15,000.

  RS is resident in Country Y where indexation is allowable from the date of purchase to the date of sale.

  The indexation factor increased by 40% in the period 1 May 20X1 to 1 December 20X3. Capital gains are taxed at 25%.

  What is the capital tax due from RS on disposal of the asset?

  A. $120,000
  B. $38,750
  C. $30,000
  D. $28,500
  C. $30,000

• Question 178:

  XYZ has the following data relating to the forecast sale of goods for the quarter to 31 December 20X2:

  

  XYZ expects trade receivables to be settled as follows:

  1.20% in the month of sale, by offering a settlement discount of 5%;

  2.30% in the month following sale, and

  3.the remainder, after allowing for irrecoverable debts, in the subsequent month

  4.$10,000 of the sales made in October 20X2 are expected to be irrecoverable

  What is the forecast amount to be received by XYZ from trade receivables in December 20X2?

  A. $132,000
  B. $122000
  C. $123 000
  D. $133 000
  D. $133 000

• Question 179:

  Which of the following correctly identifies the order of the steps involved in the development of an International Financial Reporting Standard prior to it being issued?

  A. Issue an exposure draft, then set up an advisory committee and then issue a discussion document.
  B. Set up an advisory committee then issue an exposure draft and then issue a discussion document.
  C. Issue a discussion document, then issue an exposure draft and then set up an advisory committee.
  D. Set up an advisory committee, then issue a discussion document and then issue an exposure draft.
  D. Set up an advisory committee, then issue a discussion document and then issue an exposure draft.

• Question 180:

  Which THREE of the following are principles identified by the Code of Ethics?

  A. Professional competence and expertise
  B. Professional behavior
  C. Understandability
  D. Professional competence and due care
  E. Confidentiality
  F. Neutral
  B. Professional behavior
  D. Professional competence and due care
  E. Confidentiality