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CIMA Fundamentals of Financial Accounting Sample Questions:

1. The IASB's Framework for the Preparation and Presentation of Financial Statements identifies four possible measurement bases for use in financial statements Which of the following are those bases?

A) historical cost, resale value, realizable value , present value
B) historical cost, modified historical cost, realizable value, present value
C) historical cost, current cost, realizable value, present value
D) historical cost, modified historical cost, realizable value, current cost

2. A business will maintain a non-current asset register to keep a record of all non-current assets held.
Which THREE of the following are examples of information contained within the register?

A) Proposed date of sale
B) Purchase date
C) Insurance cost details
D) Useful economic life
E) Cost of asset
F) Maintenance cost details

3. Refer to the Exhibit.

What is the wages expense for the income statement for month 1?

A) $6,966
B) $6,236
C) $3,808
D) $4,428

4. The purpose of the external audit is the examination of, and expression of opinion on the financial statements of an entity.
What is the purpose of internal audits?

A) To create fear
B) To assist employees of the organization in effective discharge of their responsibilities
C) To confirm balances presented in the financial statements
D) To prepare for external audits

5. Which THREE of the following are characteristics of financial accounting?

A) Records daily transactions
B) Meets external reporting requirements
C) Is forward looking
D) Reports historic transactions
E) Monitors actual results to expected results
F) Meets management reporting needs

Solutions: