CIMA F1 Q&A - in .pdf

  • F1 pdf
  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 27, 2026
  • Q & A: 247 Questions and Answers
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  • Exam Code: F1
  • Exam Name: Financial Reporting
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  • Updated: Sep 27, 2026
  • Q & A: 247 Questions and Answers
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CIMA F1 Q&A - Testing Engine

  • F1 Testing Engine
  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 27, 2026
  • Q & A: 247 Questions and Answers
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CIMA F1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Managing Cash and Working Capital25%- Cash and working capital management
  • 1. Receivables, payables and inventory management
  • 2. Working capital cycle and liquidity ratios
Topic 2: Regulatory Environment of Financial Reporting10%- Regulators and their role
  • 1. Corporate governance and ethical framework
  • 2. Role of IASB and IFRS Foundation
Topic 3: Principles of Taxation20%- Taxation fundamentals
  • 1. Types of tax and direct tax principles
  • 2. Tax implications and issues affecting taxation
Topic 4: Financial Statements45%- Statement preparation and IFRS application
  • 1. Statement of changes in equity and cash flows
  • 2. Prepare statement of profit or loss and other comprehensive income
  • 3. Prepare statement of financial position

CIMA Financial Reporting Sample Questions:

Question #1
Question #2

MN recently took out a 5 year term loan to buy raw materials to take advantage of a supplier's bulk discount that had been offered to them.
What approach to financing working capital has MN undertaken?

  • A. Permanent
  • B. Aggressive
  • C. Moderate
  • D. Conservative
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

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?

  • A. Conservative financing
  • B. Matching financing
  • C. Aggressive financing
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

AB has prepared its financial statements for the year ended 31 July 20X5. On 15 September 20X5 a major fraud was uncovered by the external auditors which had taken place during the year to 31 July 20X5 The financial statements have not yet been authorised In accordance with IAS 10 Events After the Reporting Period, AB should treat the fraud as:

Reveal Solution  Discussion  0

Correct Answer:

Pending

Question #5

Country X charges corporate income tax at the rate of 20% on all income irrespective of whether it is paid out as a dividend. Country Y charges corporate income tax at the rate of 25% on all income.
An entity, AA, which is resident in Country X pays a dividend of $100,000 to another entity, BB, which is resident in Country Y.
Countries X and Y have a double taxation treaty which adopts the exemption method in respect of this type of transaction.
What is BB's liability to tax in Country Y in respect of the dividend income received?

  • A. Tax will be payable at 25% less a credit given for the 20% already paid by AA in Country X.
  • B. No tax will be payable.
  • C. Tax will be payable at 25%.
  • D. Tax will be payable at 20%.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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