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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Refer to the exhibit.

Harvey commenced business with capital of $50,000. At the end of the first financial year, he has What was the profit for the period?

A) $7,000 profit
B) $7,000 loss
C) $23,000 loss
D) $23,000 profit

2. Different users have different needs from financial information. One of which is to know about the company's ability pay its debts Which of the following users will have this need for information?

A) Customers
B) Managers
C) Suppliers
D) Shareholders

3. Accounting codes have proven to be very useful when recording business transactions.
Which THREE of the following does a coding system help to do?

A) Reduce time taken to analyze transaction
B) Combine roles for the receivables and payables ledger
C) Extract balances for suppliers and customers
D) Reduce the number of transactions recorded
E) Take away the need for books of prime entry
F) Improve the quality of reports

4. Which of the following financial documents contains the manufacturing account?

A) Income statement
B) Statement of profit and loss
C) Statement of financial position
D) Statement of changes in equity

5. The role of the internal auditors is primarily to:

A) Prepare the financial accounts
B) Support the work of the external auditors by carrying out specific checks on the accuracy of the accounting system
C) Report to shareholders on the accuracy of the accounting system
D) Reduce the fees charged by the external auditors by carrying out some of their duties at a lower cost, thereby improving profits

Solutions: