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CIMA Fundamentals of Financial Accounting Sample Questions:

1. At the beginning of the year, an organization's non-current asset register showed a total net book value for fixed assets of £86,000. The nominal ledger showed non-current assets at cost of £120,000 and provision for depreciation of £39,000.
The disposal of a non-current asset for £10,000, at a profit of £2,000, had not been accounted for in the non-current asset register.
After correcting for this, the net book value shown in the ledger accounts would be

A) £5,000 higher than that in the non-current asset register
B) £3,000 higher than that in the non-current asset register
C) £13,000 lower than that in the non-current asset register
D) £7,000 higher than that in the non-current asset register

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

3. In which section of the statement of cash flow would cash from share issues be included? Select one of the following Statement of cash How for the year ended.......

4. Which TWO of the following are responsibilities of the IFRS interpretations committee?

A) Taking decisions on finalising an interpretation of the standards
B) Issuing draft interpretations of the standards for public comment
C) Communicating the views of the wider public on the ongoing projects to the IASB
D) Preparing and publishing the international financial reporting standards

5. An accounting system should provide an audit trail for all its transactions Which of the following describes an audit trail?

A) Provision of a complete history of any given financial transaction
B) The planned audit process
C) A timetable of deadlines of the audit
D) A review of the audit process completed

Solutions: