CIMA CIMAPRA19-F01-1 Exam Questions Instant Access

Question 1

Which of the following methods could be used by a tax authority to reduce tax evasion and avoidance?

AIncrease tax rates to compensate for losses due to evasion.

BReduce penalties for avoidance.

CReduce requirements to have tax returns audited.

DSimplify the tax structure, minimizing allowances and exemptions.

Answer : D

Question 2

Which of the following is a type of short-term finance?

ATrade payables

BTrade receivables

CInterest bearing bank deposit

DLoan repayable in five years

Answer : A

Question 3

Which of the following is the responsibility of the International Financial Reporting Standards Interpretations Committee?

AThe development and publication of new international financial reporting standards.

BTo provide a forum for interested parties to participate in the formulation of international financial reporting standards.

CTo provide authoritative guidance on the application of international financial reporting standards where conflicting practice has developed.

DTo advise the International Accounting Standards Board on the agenda and priorities for future work.

Answer : C

Question 4

Which of the following does the phrase 'events after the reporting period' refer to?

AMaterial events which occur between the statement of financial position date and the date on which the financial statements are approved

BMaterial events which occur after the release of the statement of financial position

CMaterial events which occur before the statement of financial position date

DMaterial events which occur between the income statement date and the statement of financial position date

Answer : A

Question 5

There are two main approaches to corporate governance: rules-based and principle-based.

Which THREE of the following are correct?

ARules-based corporate governance applies to the USA and principle-based corporate governance applies to the UK.

BRules-based corporate governance applies to the UK and principle-based corporate governance applies to the USA.

CSarbanes Oxley Act (SOX) is a rules-based approach to corporate governance.

DSarbanes Oxley Act (SOX) is a principle-based approach to corporate governance.

EA principle-based approach will mean the entity must comply or explain and a rules-based approach will have appropriate penalties for transgression.

FBest practice will use a rules-based approach to corporate governance and will have appropriate penalties for transgression.

Answer : A, C, E

Question 6

Which THREE of the following statements are NOT true of the IFRS Foundation trustees?

AAre involved in the technical matters relating to accounting standards

BAre mainly from Europe and the USA

CReceive funding by donations from the general public

DResponsible for appointing members of the IA5B

EResponsible of appointing members of the IFRS interpretations committee

Answer : A, B, C

Question 7

Company Y is using some of the money from a share issue to purchase a new office building. The company is also using some of the money to purchase inventories. Which method of financing is this?

AConservative financing

BMatching financing

CAggressive financing

Answer : A

CIMA F1 Financial Reporting CIMAPRA19-F01-1 Exam Questions