F1 by CIMA Actual Free Exam Q&As

Question 1

Mr K is being pressured by his manager to change figures in his report so that it will improve his manager's bonus.
His manager has promised Mr K a promotion if he agrees to do this.
What threats is Mr K facing?

A. Self-review and advocacy B. Intimidation and self-interest C. Familiarity and self-interest D. Intimidation and familiarity

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Correct Answer: B Vote an answer

Question 2

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Correct Answer:

Question 3

In an entity's statement of profit or loss and other comprehensive income, which of the following would be presented as other comprehensive income?

A. The profit on the disposal of a non-current asset B. An impairment loss relating to a non-current asset that had not previously been revalued. C. An increase in the depreciation charge resulting from the revaluation of a non-current asset. D. The increase in the value of a non-current asset following a revaluation.

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Correct Answer: D Vote an answer

Question 4

Which of the following is NOT a type of supply for value added tax (VAT)?

A. Exempt B. Zero-rated C. Standard-rated D. Fixed

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Correct Answer: D Vote an answer

Question 5

What does the exemption method of giving double taxation relief mean?

A. The countries agree that all types of income will be exempt or partially exempt in one country or the other. B. The countries agree on certain types of income which will be exempt or partially exempt in both countries. C. The countries agree that all types of income will be exempt or partially exempt in both countries. D. The countries agree on certain types of income which will be exempt or partially exempt in one country or the other.

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Correct Answer: D Vote an answer

Question 6

Which of the following would NOT be assessed for tax under a Pay-As-You-Earn system?

A. The wealth of an employee. B. Profit-sharing payments received by an employee. C. Benefits in kind received by an employee. D. Commissions received by an employee.

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Correct Answer: A Vote an answer

Question 7

Country J is a newly formed independent country and it's accounting professionals are considering adopting international financial reporting standards (IFRS).
Which of the following is a disadvantage to Country J of adopting IFRS as their local generally accepted accounting practice (GAAP)?

A. Specific local variations that might be needed will not be accommodated. B. Facilitates comparability with other countries who use IFRS as their local GAAP. C. Easier to adopt standards which have already been developed. D. IFRS are quick to implement which reduces the costs involved.

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Correct Answer: A Vote an answer

Question 8

Which TWO of the following are features of a bank overdraft?

A. Repayments are scheduled in advance B. The amount off overdraft utilised will fluctuate according to the needs off the borrowing entity. C. Interest is charged on the balance outstanding. D. A fixed amount of interest is determined for the period of the overdraft E. The bank cannot demand repayment of the overdraft before the end of the agreed period.

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Correct Answer: B,C Vote an answer

CIMA Financial Reporting - F1 Exam Practice Test