CIMA CIMAPRA19-F01-1 Exam Practice Test Instant Access

Question 1

Which of the following is NOT a principle in the CIMA Code of Ethics for Professional Accountants?

AIntegrity

BProfessional competence and due care

CTimeliness

DObjectivity

Answer : C

Question 2

Which of the following is NOT a feature of a multi-stage sales tax?

AThe entire tax burden is usually passed to the final consumer.

BTax is charged each time a product is sold in the chain from manufacturer through to retailer.

CTax is applied at the retail level only and not at production level.

DCredit may not be allowed for taxes paid on sales within the chain from manufacturer through to retailer.

Answer : C

Question 3

Which one of the following is NOT a step in the development of an International Financial Reporting Standard (IFRS)?

APublication of discussion documents.

BPublication of exposure drafts.

CEstablishment of an advisory committee to advise on issues arising in the development of the IFRS.

DProduction of draft interpretations of the IFRS which are open to public comment.

Answer : D

Question 4

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 5

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

Question 6

In accordance with IFRS 3 Business Combinations, acquisition accounting of an investment in another entity within the consolidated statement of financial position means that the:

AParent's and 100% of the other entity's assets and liabilities are added together line by line.

BGroup's share of the net assets of the other entity are shown as one line under non-current assets.

CParent's and group share of the other entity's assets and liabilities are added together line by line.

DGroup's share of the net assets of the other entity are shown as one line within equity.

Answer : A

Question 7

Which of the following is NOT a type of supply for value added tax (VAT)?

AFixed

BStandard-rated

CExempt

DZero-rated

Answer : A

CIMA F1 Financial Reporting CIMAPRA19-F01-1 Exam Practice Test