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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Refer to the Exhibit.

A company operates an AVCO system of inventory. Opening inventory at the beginning of the period was 400 units @ $6.50 per unit.
During the period, the following purchases and issues were recorded:
The amount charged to the company's income statement in the period is

2. It underpins all accounting standards and provides the platform from which all future standards will be developed.
Which ONE of the following is described above?

A) The European Union
B) The Framework
C) The International Financial Reporting Interpretation Committee
D) The Companies Act

3. Refer to the Exhibit.

The Financial Accountant for a company is preparing the monthly bank reconciliation and has extracted the following information:
The correct cash book balance at the month end will be:

A) $42,870
B) $41,960
C) $29,140
D) $44,610

4. A company which is VAT-registered receives an invoice for goods purchased for resale totaling $2,585 from a supplier that is not VAT-registered. VAT is at the rate of 17.5%.
The correct entry to record the invoice is:
A)

B)

C)

D)

A) Exhibit B
B) Exhibit A
C) Exhibit D
D) Exhibit C

5. Which one of the following is unlikely to be identified by the ratio analysis of a company's financial statements?

A) Effective use of assets
B) Significant capital commitments
C) Excessive debt
D) Poor working capital management

Solutions: